How Are Ewen, MI Car Loan Rates Determined?
A handful of factors affect your Michigan auto loan rate, including your income, your credits core, the loan amount, 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 Ewen could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the more you pay each month and the more you spend over the life of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more overall.
Is There a Way to Lower My Ewen Car Loan Rate?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you start applying for auto loans in Ewen, MI. If you've supplied your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one factor you can control. Most car loans in Ewen have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because the monthly payment is usually lower. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different interest rates and terms to help you decide what you can afford.
If your credit is far from great, increasing your score could decrease your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's worth it for those lower Michigan auto loan rates.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders will look at 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 Ewen, MI — even if you don't have the highest income or best credit. You don't want to choose the first offer you get because a better one could be right around the corner. And, 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.
Find the Best Auto Loan Rates in Ewen, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Ewen, MI regardless of what type of vehicle you're buying or your credit score. We'll present you with up to four loans at once so you can find the best deal. Fill out our simple and secure online application, select the best loan for you, and visit your Ewen dealer to purchase a new car. Apply today to see the current lowest interest rates!