How Are Car Loan Rates in Ann Arbor, MI Calculated?
A handful of factors affect your Michigan auto loan interest rate, including your income, your credits core, the loan amount, the car's age, the down payment, and the length of the loan (your loan's term). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Ann Arbor dealer might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the more you pay each month and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Ann Arbor, MI?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before you begin applying for auto loans in Ann Arbor, MI. If you've filled out your information and aren't happy with the percentage you see, how can you lower?
The loan term is one element you can change on your own. Most Ann Arbor car loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because they usually mean a lower monthly payment. But longer terms tend to also 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 estimates what your monthly payment could be depending on different interest rates and terms to help you figure out what might work for your budget.
If your credit is far from great, improving 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 which steps you can take today to bring it up quickly. Your credit score will take some effort and time to build, but it's worth it to get those lower Michigan car loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will use 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 Ann Arbor, MI — even without a high income or credit score. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. Don't forget some lenders will negotiate, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Find the Best Auto Loan Rates in Ann Arbor, MI with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Ann Arbor, MI regardless of what type of vehicle you're buying or your credit score. You can look at up to four loans at once so you can get the right deal. Complete our secure online application, select the best loan for you, and head to your Ann Arbor dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!