How Are Car Loan Rates in Pikesville, MD Calculated?
A handful of factors impact your Maryland auto loan rate, including your credit score, the amount of the loan, your income, the age of the car, the down payment, 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 Pikesville dealer could lead to a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the more you pay each month and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Pikesville, 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 Pikesville, MD. If you've put in your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one factor you can control. Most Pikesville auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because they typically have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. 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 based on different interest rates and terms to help you decide what might work for your budget.
If your credit is less than stellar, increasing 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 the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's all worth it for getting those lower auto loan rates in Maryland.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders will consider 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 Pikesville, 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 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.
Find the Best Auto Loan Rates in Pikesville, MD with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Pikesville, MD regardless of your credit score and the type of car you're buying. We'll show you up to four loans at once so you can find the best deal. Fill out our secure online application, pick the loan that works best for you, and head down to a dealer in Pikesville to purchase a new ride. Apply now to check today's lowest interest rates!