How Are Car Loan Rates in Newcastle, ME Calculated?
Various factors contribute to your Maine car loan rate, including the loan amount, your credit score, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Newcastle might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate, the higher your monthly payment becomes and the more you spend over the life of your loan. Even a rate one or two percent higher could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Newcastle, ME?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might look like before having to apply for a car loan in Newcastle, ME. If you've supplied your information and aren't happy with the percentage you see, what can you do to lower it?
The loan term is one element you have a lot of control over. Most car loans in Newcastle have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be based on different interest rates and terms to help you figure out what you might be able to afford.
If you have less than stellar credit, increasing your score could lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in Maine.
Waiting to find the right lender can also help you achieve a lower rate. While lenders will look at the same information, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Newcastle, ME — even without the best credit or income. You don't want to choose the first offer you get because a better one might be waiting just around the corner. Plus, some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
See the Best Auto Loan Rates in Newcastle, ME with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Newcastle, ME no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can find the perfect loan. Fill out our simple and secure online application, select the best loan for you, and head down to a dealer in Newcastle to purchase a new ride. Apply now to check today's lowest interest rates!