How Are Kalamazoo, MI Car Loan Rates Determined?
Several factors impact your Michigan auto loan interest rate, including the loan amount, your credit score, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A poor credit score, low income, or buying an older vehicle from a dealer in Kalamazoo could result in a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over the term 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 Kalamazoo, MI?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might look like before you complete an application for a car loan in Kalamazoo, MI. If you've plugged in your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one thing you have a lot of control over. Most Kalamazoo car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms attract many borrowers because they usually have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payments might look like depending on different interest rates and terms to help you determine what might be affordable.
If your credit is far from great, boosting your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take to bring it up fast. Your credit score may take some more time and work, but it's worth it to get those lower Michigan car loan rates.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will consider the same information, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Kalamazoo, MI — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Plus, some lenders leave room for 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 Kalamazoo, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Kalamazoo, 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. Complete our secure online application, select the best loan for you, and head to your Kalamazoo dealer to purchase a new ride. Apply today to see the current lowest interest rates!