What Determines Your Auto Loan Rate in Fenton, MI?
Many factors contribute to 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 high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Fenton might lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate, the higher your monthly payment becomes and the more you spend in total. A difference of just one or two percent could mean spending hundreds more overall.
Is There a Way to Lower My Fenton Car Loan Rate?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before you start applying for auto loans in Fenton, MI. If you've supplied your information and are unhappy with the percentage you see, how can you lower?
The loan term is one aspect you can control. Most Fenton car loans 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. 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 shows what your monthly payment might be with different interest rates and terms to help you see what might be affordable.
If you have less than stellar credit, raising your score could lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take today to bring it up quickly. It may take some effort and time to increase your credit score, but it's worth it to get those lower Michigan car loan rates.
Waiting to find the right lender can also help you get a lower rate. While lenders will look at the same information, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Fenton, MI — even without a high income or credit score. You shouldn't automatically choose the first offer you get because a better one could be right around the corner. Don't forget some lenders are open to negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Use myAutoloan to Check the Best Auto Loan Rates in Fenton, MI
myAutoloan is dedicated to helping you find the lowest car loan rates in Fenton, 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 right deal. Simply complete our secure online application, select the best loan for you, and visit your Fenton dealer to purchase a new car. Apply today to see the current lowest interest rates!