How Are Car Loan Rates in Clarkston, MI Calculated?
Many factors impact your Michigan car loan rate, Including your credit score, your income, the amount of the loan, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Clarkston could mean a higher interest rate. But why worry about a high interest rate? The higher your interest rate, the higher your monthly bill is and the more you spend over the term of your loan. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Clarkston, MI?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might look like before you start applying for auto loans in Clarkston, MI. If you've filled out your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one thing you have a lot of control over. Most Clarkston car loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms will tempt many borrowers because they usually have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If your budget allows for a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you determine what might be affordable.
If you have less than ideal credit, improving your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take to bring it up fast. Your credit score may take some more time and work, but it'll be worth it once you see those lower Michigan auto loan rates.
Waiting to find the right lender can also help you achieve a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Clarkston, MI — even if you don't have the highest income or best credit. 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 another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Clarkston, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Clarkston, MI 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 find the right deal. Complete our secure online application, select the best loan for you, and head to your Clarkston dealer to purchase a new ride. Apply now to check today's lowest interest rates!