How Are Frederick, MD Auto Loan Rates Determined?
Several factors impact 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Frederick dealer 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 is and the more you spend over your loan’s term. A difference of just one or two percent could mean spending hundreds more overall.
How Do I Get a Lower Car Loan Interest in Frederick, MD?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before having to apply for a car loan in Frederick, MD. If you've plugged in your information and aren't happy with the percentage you see, what can you do to lower it?
The loan term is one factor you have total control over. Most Frederick 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 are also likely to come with higher interest rates. If you can handle a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you decide what you can afford.
If your credit is less than stellar, improving 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. It may take some effort and time to increase your credit score, but it'll be worth it once you see those lower Maryland auto loan rates.
Waiting to find the right lender can also help you achieve a lower rate. While lenders will consider the same information, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Frederick, MD — even without the best credit or income. You don't want to choose the first offer you get 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.
Discover the Best Auto Loan Rates in Frederick, MD with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Frederick, MD no matter what type of car you're buying or your credit score. We'll present you with up to four loans at once so you can find the best deal. Fill out our simple and secure online application, pick the loan that works best for you, and head to your Frederick dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!