How Are Car Loan Rates in Clio, MI Calculated?
A handful of factors influence your Michigan auto loan interest rate, including your income, your credits core, the loan amount, the down payment, your loan's term (the length of the loan), and the car's age. A poor credit score, low income, or buying an older vehicle from a dealer in Clio could result in a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly bill is and the more you spend in total. Even a rate one or two percent higher could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in Clio, 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 Clio, MI. If you've filled out your information and don't like the percentage you see, how can you lower?
The loan term is one aspect you have a lot of control over. Most Clio car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If you can afford a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like depending on different interest rates and terms to help you see what might work for your budget.
If your credit is less than stellar, increasing your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and how you can quickly bring it up. 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.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will look at the same information, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Clio, MI — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because there might be a better one just 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.
Use myAutoloan to Check the Best Auto Loan Rates in Clio, MI
myAutoloan is here to help you get the lowest auto loan rates in Clio, 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 find the best deal. Fill out our secure online application, choose the loan that looks best to you, and visit your Clio dealer to purchase a new car. Apply now to see today's lowest interest rates!