How Are Springfield, MA Car Loan Rates Determined?
Various factors impact your Massachusetts auto loan interest rate, including the loan amount, your credit score, 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 Springfield dealership could mean a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the higher your monthly payment is and the more you spend over your loan’s term. A difference of just one or two percent could mean spending hundreds more overall.
Is There a Way to Lower My Springfield Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might look like before having to apply for a car loan in Springfield, MA. If you've put in your information and don't like the percentage you see, what steps can you take to lower it?
The loan term is one thing you have a lot of control over. Most Springfield auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers take longer terms because the monthly payment is usually lower. But longer terms tend to also 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 shows what your monthly payments might look like based on different interest rates and terms to help you figure out what you might be able to afford.
If your credit is far from great, improving 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 how you can quickly bring it up. It may take some time and work to better your credit score, but it'll be worth it once you see those lower Massachusetts auto loan rates.
Waiting to find the right lender can also help you achieve a lower rate. While lenders take the same information into consideration, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Springfield, MA — even without a high income or credit score. You shouldn't go with the first offer you receive because a better one could be right around the corner. Keep in mind 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 Springfield, MA with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Springfield, MA regardless of what type of vehicle you're buying or your credit score. We'll show you up to four loans at once so you can get the right deal. Fill out our simple and secure online application, choose the loan that looks best to you, and visit your Springfield dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!