How Are Car Loan Rates in Methuen, MA Calculated?
A handful of factors affect your Massachusetts car loan rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Methuen dealership could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the higher your monthly payment is and the more you spend over the life of your loan. A difference of just one or two percent could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Methuen, MA?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before you begin applying for auto loans in Methuen, MA. If you've filled out your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one factor you have total control over. Most auto loans in Methuen are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms because the monthly payment is usually lower. But longer terms are also likely to come with higher interest rates. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you figure out what might be affordable.
If your credit is far from great, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take today to bring it up quickly. It may take some time and work to better your credit score, but it's all worth it for getting those lower auto loan rates in Massachusetts.
Putting effort into finding the right lender can also help you get 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 Methuen, MA — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. And, some lenders allow for negotiation, 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 Methuen, MA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Methuen, 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 right deal. Fill out our secure online application, choose the best loan for you, and head to your Methuen dealer to purchase a new ride. Apply now to check today's lowest interest rates!