How Are Ferndale, MI Car Loan Rates Determined?
Various factors affect your Michigan auto loan rate, including the loan amount, your credit score, your income, the age of the car, the down payment, 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 Ferndale might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend in total. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Ferndale Car Loan Rate?
With tools like our Interest Rate Estimator, you can get a feel for what your rate might look like before you complete an application for a car loan in Ferndale, MI. If you've put in your information and don't like the percentage you see, how can you lower?
The loan term is one aspect you can change on your own. Most Ferndale auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers take longer terms because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, it's wise 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 determine what might be affordable.
If your credit is far from great, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. 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.
Putting effort into finding the right lender can also help you snag a lower rate. While lenders will use the same information, you won't see the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Ferndale, MI — even without the best credit or income. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Keep in mind 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.
Discover the Best Auto Loan Rates in Ferndale, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Ferndale, 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. Simply complete our secure online application, choose the best loan for you, and visit your Ferndale dealer to purchase a new car. Apply now to check today's lowest interest rates!