How Are Aberdeen, MD Auto Loan Rates Determined?
Various factors influence your Maryland car loan interest rate, including your income, your credits core, the loan amount, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Aberdeen dealership could 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 in total. Even a rate one or two percent higher could mean spending hundreds more overall.
Is There a Way to Lower My Aberdeen Car Loan Rate?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you complete an application for a car loan in Aberdeen, MD. If you've supplied your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one element you can control. Most Aberdeen auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because they usually have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different terms and interest rates to help you see what you can afford.
If you have less than stellar credit, boosting your score could lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and the steps you can take now to raise it quickly. It may take some time and work to better your credit score, but it's worth it to get those lower Maryland car loan rates.
Taking some time 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 Aberdeen, MD — even if you don't have the best credit or income. You don't want to go with the first offer you receive because there could be a better one right around the corner. And, some lenders leave room for negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Aberdeen, MD with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Aberdeen, MD no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can find the best deal. Simply complete our secure online application, pick the loan that works best for you, and head down to a dealer in Aberdeen to purchase a new ride. Apply today to see the current lowest interest rates!