What Determines Your Auto Loan Rate in Laurel, MD?
Several factors influence your Maryland auto loan rate, including your income, your credits core, the loan amount, the down payment, the age of the car, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Laurel dealer could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the higher your monthly payment is and the more you spend over the term of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Laurel, MD?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before you start applying for auto loans in Laurel, MD. If you've plugged in your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one factor you can control. Most Laurel auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers are drawn in by longer terms because the monthly payment is usually lower. However, longer terms also tend to come with higher interest rates. If you can afford a bigger monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be with different terms and interest rates to help you decide what might work for your budget.
If you have less than ideal credit, raising your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take today to bring it up 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.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Laurel, MD — even without 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. Keep in mind some lenders are open to negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
See the Best Auto Loan Rates in Laurel, MD with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Laurel, MD regardless of what type of vehicle you're buying or your credit score. We'll show you up to four loans at once so you can find the right deal. Complete our secure online application, choose the best loan for you, and head down to a dealer in Laurel to purchase a new ride. Don't wait to apply and check today's lowest interest rates!