What Determines Your Auto Loan Rate in Detroit, MI?
Many factors influence your Michigan auto loan rate, including your credit score, the amount of the loan, your income, the down payment, the age of the car, 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 Detroit might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate is, 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 Detroit, MI?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you complete an application for a car loan in Detroit, MI. 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 aspect you have total control over. Most car loans in Detroit have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms because they usually have 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 better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you decide what might be affordable.
If you have less than stellar credit, boosting 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 today to bring it up quickly. It may take some time and work to better your credit score, but it's worth it to get those lower Michigan car loan rates.
Putting effort into finding the right lender can also help you snag 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 Detroit, MI — even if you don't have the best credit or income. You shouldn't go with the first offer you receive because there might be a better one just around the corner. Plus, some lenders leave room for negotiation, 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 Detroit, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Detroit, 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 find the right deal. Complete our secure online application, select the best loan for you, and visit your Detroit dealer to purchase a new car. Apply now to check today's lowest interest rates!