How Are Car Loan Rates in Gaithersburg, MD Calculated?
Several factors affect your Maryland car loan rate, including your credit score, the amount of the loan, your income, 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 Gaithersburg dealer could lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the more you pay each month and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Gaithersburg, MD?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before you complete an application for a car loan in Gaithersburg, MD. If you've filled out your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one factor you have a lot of control over. Most auto loans in Gaithersburg have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because they usually have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you decide what might work for your budget.
If you have less than stellar credit, boosting your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take to bring it up fast. It may take some effort and time to increase your credit score, but it's worth it to get those lower Maryland car loan rates.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will use the same information, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Gaithersburg, MD — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. And, some lenders will negotiate, 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 Gaithersburg, MD with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Gaithersburg, MD no matter what type of car you're buying or your credit score. You can look at up to four loans at once so you can find the right deal. Fill out our secure online application, pick the loan that works best for you, and head to your Gaithersburg dealer to purchase a new ride. Apply now to see today's lowest interest rates!