How Are Bethesda, MD Car Loan Rates Determined?
Several factors affect your Maryland auto loan interest rate, including your income, your credits core, the loan amount, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Bethesda dealership could result in a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the higher your monthly bill is and the more you spend over your loan’s term. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Bethesda, MD?
Online tools like our Interest Rate Estimator will give you a feel for what your rate could be before you complete an application for a car loan in Bethesda, MD. If you've filled out your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one thing you have a lot of control over. Most Bethesda auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms attract many borrowers because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payments might look like with different terms and interest rates to help you figure out what you can afford.
If you have less than stellar credit, increasing your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take today to bring it up quickly. Your credit score will take some effort and time to build, but it's worth it for those lower Maryland auto loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Bethesda, MD — even without a high income or credit score. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Don't forget 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 Bethesda, MD with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Bethesda, 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 right deal. Fill out our secure online application, select the best loan for you, and purchase a new ride from your {City}} dealer. Apply today to see the current lowest interest rates!