What Determines Your Auto Loan Rate in Jackson, MI?
Many factors influence your Michigan auto loan interest rate, including your income, your credits core, the loan amount, the down payment, the age of the car, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Jackson dealer could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, 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.
Can I Lower My Car Loan Rate in Jackson, MI?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you start applying for auto loans in Jackson, MI. If you've filled out your information and are unhappy with the percentage you see, how can you lower?
The loan term is one thing you have a lot of control over. Most Jackson car loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take 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 based on different interest rates and terms to help you decide what you can afford.
If you have less than stellar credit, improving your score could help lower 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. It may take some effort and time to increase your credit score, but it's worth it for those lower Michigan auto loan rates.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Jackson, MI — even without the best credit or income. You don't want to go with the first offer you receive because a better one could be right around the corner. Keep in mind some lenders are open to negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Jackson, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Jackson, MI no matter what type of car you're buying or your credit score. We'll present you with up to four loans at once so you can find the perfect loan. Fill out our simple and secure online application, select the best loan for you, and visit your Jackson dealer to purchase a new car. Apply now to see today's lowest interest rates!