How Are Howell, MI Car Loan Rates Determined?
Many factors contribute to your Michigan auto loan interest rate, Including your credit score, your income, the amount of the loan, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Howell dealership might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate, the higher your monthly payment is and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Howell, MI?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before you complete an application for a car loan in Howell, MI. If you've plugged in your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one thing you can control. Most auto loans in Howell 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, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you figure out what you can afford.
If your credit is less than stellar, improving your score could 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. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in Michigan.
Taking the time to hunt down the right lender can also help you get a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Howell, 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 there could be a better one right around the corner. Keep in mind some lenders will negotiate, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Discover the Best Auto Loan Rates in Howell, MI with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Howell, MI no matter your credit score or the type of car you're buying. We'll show you up to four loans at once so you can find the best deal. Fill out our simple and secure online application, choose the loan that looks best to you, and head to your Howell dealer to purchase a new ride. Apply now to see today's lowest interest rates!