How Are Franklin, MA Auto Loan Rates Determined?
Various factors contribute to your Massachusetts auto loan interest rate, including the loan amount, your credit score, 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 Franklin dealership might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the more you pay each month and the more you spend over the term of your loan. Even a rate one or two percent higher could mean spending hundreds more overall.
How Can I Get a Lower Car Loan Rate in Franklin, MA?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you begin applying for auto loans in Franklin, MA. If you've filled out your information and don't like the percentage you see, how can you lower?
The loan term is one thing you have a lot of control over. Most Franklin auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms because they typically have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment depending on different interest rates and terms to help you figure out what might be affordable.
If you have less than stellar credit, increasing your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your 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 worth it to get those lower Massachusetts car loan rates.
Taking the time to hunt down the right lender can also help you secure a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Franklin, MA — even without the best credit or income. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. Keep in mind some lenders allow for 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 Franklin, MA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Franklin, MA no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can find the best deal. Fill out our secure online application, choose the loan that looks best to you, and head down to a dealer in Franklin to purchase a new ride. Don't wait to apply and check today's lowest interest rates!