How Are Car Loan Rates in Lansing, MI Calculated?
Many factors contribute to your Michigan auto loan interest rate, including your income, your credits core, the loan amount, 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 Lansing might lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly payment becomes and the more you spend over your loan’s term. Even a rate one or two percent higher could mean you spend hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Lansing, MI?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before you complete an application for a car loan in Lansing, MI. If you've filled out your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one element you can change on your own. Most auto loans in Lansing have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers take longer terms because they typically have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you see what you can afford.
If your credit is far from great, increasing your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and how you can quickly bring it up. It may take some effort and time to increase your credit score, 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 will consider the same information, you'll likely receive a different interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Lansing, MI — even without a high income or credit score. You shouldn't go with the first offer you receive because a better one might be waiting just around the corner. Plus, 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.
Use myAutoloan to Check the Best Auto Loan Rates in Lansing, MI
myAutoloan wants to help you find the lowest auto loan rates in Lansing, MI no matter your credit score or the type of car you're buying. We'll present you with up to four loans at once so you can find the right deal. Fill out our simple and secure online application, choose the best loan for you, and visit your Lansing dealer to purchase a new car. Apply now to check today's lowest interest rates!