How Are Car Loan Rates in Lexington Park, MD Calculated?
A handful of factors contribute to your Maryland auto loan interest rate, including your credit score, the amount of the loan, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Lexington Park could result in a higher interest rate. But why worry about a high interest rate? The higher your interest rate is, the higher your monthly payment becomes and the more you spend over the life of your loan. Even a rate one or two percent higher could mean spending hundreds more overall.
How Do I Get a Lower Car Loan Interest in Lexington Park, MD?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before you start applying for auto loans in Lexington Park, MD. If you've filled out your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one aspect you can control. Most auto loans in Lexington Park have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because the monthly payment is usually lower. However, longer terms also tend to come with higher interest rates. If you can afford a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you decide what you can afford.
If your credit is far from great, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and how you can quickly bring it up. Your credit score will take some effort and time to build, but it's worth it to get those lower Maryland car loan rates.
Taking the time to hunt down the right lender can also help you achieve a lower rate. While lenders will use 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 Lexington Park, MD — even without a high income or credit score. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. Plus, some lenders will negotiate, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Find the Best Auto Loan Rates in Lexington Park, MD with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Lexington Park, 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 simple and secure online application, pick the loan that works best for you, and head down to a dealer in Lexington Park to purchase a new ride. Apply today to see the current lowest interest rates!