How Are Car Loan Rates in Farmington Hills, MI Calculated?
A handful of factors affect your Michigan car loan rate, including the loan amount, your credit score, your income, the down payment, your loan's term (the length of the loan), and the car's age. A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Farmington Hills dealer might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate, the higher your monthly payment becomes and the more you spend over the term of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Farmington Hills, MI?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you start applying for auto loans in Farmington Hills, MI. If you've supplied your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one aspect you have total control over. Most Farmington Hills auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can handle a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be depending on different interest rates and terms to help you determine what you can afford.
If your credit is less than stellar, improving your score could help lower 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 all worth it for getting those lower auto loan rates in Michigan.
Taking the time to hunt down the right lender can also help you achieve a lower rate. While lenders will consider the same information, you'll likely receive a different interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Farmington Hills, MI — even without a high income or credit score. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. Plus, some lenders allow for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Farmington Hills, MI
myAutoloan is dedicated to helping you find the lowest car loan rates in Farmington 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. Complete our secure online application, choose the best loan for you, and visit your Farmington Hills dealer to purchase a new car. Apply now to see today's lowest interest rates!