How Are Frankenmuth, MI Auto Loan Rates Determined?
Various factors contribute to your Michigan auto loan interest rate, Including your credit score, your income, the amount of the loan, the car's age, the down payment, and the length of the loan (your loan's term). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Frankenmuth dealer could result in 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 over your loan’s term. A difference of just one or two percent could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Frankenmuth, MI?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before you complete an application for a car loan in Frankenmuth, MI. If you've put in your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one element you have total control over. Most auto loans in Frankenmuth have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because the monthly payment is usually lower. However, longer terms also tend to come with higher interest rates. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you figure out what might work for your budget.
If your credit is far from great, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take today to bring it up quickly. Your credit score will take some effort and time to build, but it'll be worth it once you see those lower Michigan auto loan rates.
Taking the time to hunt down the right lender can also help you achieve a lower rate. While lenders will use 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 Frankenmuth, MI — even if you don't have the best credit or income. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. Don't forget some lenders will negotiate, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
See the Best Auto Loan Rates in Frankenmuth, MI with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Frankenmuth, MI regardless of your credit score and the type of car you're buying. You can look at up to four loans at once so you can find the right deal. Fill out our secure online application, select the best loan for you, and head to your Frankenmuth dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!