How Are Car Loan Rates in Auburn Hills, MI Calculated?
Many factors impact your Michigan car loan interest rate, including your income, your credits core, the loan amount, the age of the car, the down payment, and your loan's term (the length of the loan). A poor credit score, low income, or buying an older vehicle from a dealer in Auburn Hills could result in a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the higher your monthly payment becomes and the more you spend over your loan’s term. Even a rate one or two percent higher could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Auburn Hills, MI?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before having to apply for a car loan in Auburn Hills, MI. If you've put in your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one aspect you can change on your own. Most auto loans in Auburn Hills have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because they usually mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a bigger monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you see what you might be able to afford.
If your credit is less than stellar, increasing your score could decrease 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. Your credit score will take some effort and time to build, but it's worth it for those lower Michigan auto loan rates.
Taking some time to find the right lender can also help you get a lower rate. While lenders will use 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 Auburn Hills, MI — even without a high income or credit score. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. Don't forget 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.
See the Best Auto Loan Rates in Auburn Hills, MI with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Auburn Hills, MI regardless of what type of vehicle you're buying or your credit score. You can see up to four loans at once so you can get the right deal. Fill out our secure online application, select the best loan for you, and purchase a new ride from your {City}} dealer. Don't wait to apply and check today's lowest interest rates!