What Determines Your Auto Loan Rate in Marquette, MI?
A handful of factors impact your Michigan auto loan rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Marquette dealership could lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the more you pay each month and the more you spend over your loan’s term. Just one or two percent more could mean you spend hundreds more on interest.
How Do I Lower My Auto Loan Rate in Marquette, MI?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you complete an application for a car loan in Marquette, MI. If you've filled out your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one element you have a lot of control over. Most car loans in Marquette have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows your possible monthly payment depending on different interest rates and terms to help you decide what might work for your budget.
If your credit is less than stellar, boosting your score could 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. It may take some time and work to better 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 look at the same information, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Marquette, MI — even without a high income or credit score. You don't want to choose the first offer you get because there could be a better one right around the corner. Don't forget 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.
Discover the Best Auto Loan Rates in Marquette, MI with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Marquette, MI regardless of your credit score and 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 secure online application, pick the loan that works best for you, and head down to a dealer in Marquette to purchase a new ride. Apply today to see the current lowest interest rates!