How Are Holly, MI Auto Loan Rates Determined?
A handful of factors affect your Michigan auto loan interest 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 high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Holly dealership could result in a higher interest rate. But why worry about a high interest rate? The higher your interest rate, the higher your monthly bill is and the more you spend over the life 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 Do I Lower My Auto Loan Rate in Holly, MI?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before you start applying for auto loans in Holly, MI. If you've filled out your information and aren't happy with the percentage you see, how can you lower?
The loan term is one thing you can control. Most auto loans in Holly 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 typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for 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 you have less than ideal credit, improving your score could help lower 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 to bring it up fast. It may take some time and work to better your credit score, but it's worth it for those lower Michigan auto loan rates.
Waiting to find the right lender can also help you snag a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Holly, 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.
See the Best Auto Loan Rates in Holly, MI with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Holly, MI no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can find the best deal. Complete our secure online application, pick the loan that works best for you, and head to your Holly dealer to purchase a new ride. Apply now to see today's lowest interest rates!