What Determines Your Auto Loan Rate in Fremont, MI?
Several factors impact your Michigan car loan rate, including the loan amount, your credit score, your income, the car's age, the down payment, and the length of the loan (your loan's term). A poor credit score, low income, or buying an older vehicle from a dealer in Fremont could lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate is, the higher your monthly payment is and the more you spend over the life of your loan. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Fremont, MI?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you begin applying for auto loans in Fremont, MI. If you've plugged in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one element you can change on your own. Most Fremont auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you figure out what might be affordable.
If you have less than ideal credit, raising your score could decrease 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. 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.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders take the same information into consideration, you won't see the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Fremont, MI — even without a high income or credit score. You don't want to go with the first offer you receive because there might be a better one just around the corner. And, some lenders are open to negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Find the Best Auto Loan Rates in Fremont, MI with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Fremont, MI no matter what type of car you're buying or your credit score. We'll show you up to four loans at once so you can find the perfect loan. Fill out our secure online application, choose the loan that looks best to you, and head to your Fremont dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!