How Are Cambridge, MA Auto Loan Rates Determined?
Several factors influence your Massachusetts auto loan 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, poor credit score, or choosing an older vehicle at your Cambridge dealership could lead to a higher interest rate. But is a high interest rate so bad? The higher of an interest rate you have, the more you pay each month and the more you spend over the term of your loan. Just one or two percent more could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Cambridge, MA?
Online tools like our Interest Rate Estimator will give you a feel for what your rate could be before you begin applying for auto loans in Cambridge, MA. If you've supplied your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one thing you have total control over. Most Cambridge auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers take longer terms because they usually have a lower monthly payment. But longer terms tend to also 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 shows what your monthly payments might look like with different terms and interest rates to help you decide what you might be able to afford.
If you have less than stellar credit, increasing your score could lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take to bring it up fast. Your credit score may take some more time and work, but it's worth it for those lower Massachusetts auto loan rates.
Waiting to find the right lender can also help you secure a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Cambridge, MA — even if you don't have the best credit or income. You don't want to go with the first offer you receive because there could be a better one right around the corner. Don't forget 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 Cambridge, MA with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Cambridge, MA 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. Complete our secure online application, choose the loan that looks best to you, and head down to a dealer in Cambridge to purchase a new ride. Don't wait to apply and check today's lowest interest rates!