What Determines Your Auto Loan Rate in Midland, MI?
Many factors influence your Michigan auto loan rate, including your income, your credits core, the loan amount, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Midland dealership could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the higher your monthly payment is and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Midland, MI?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you begin applying for auto loans in Midland, MI. If you've put in your information and aren't happy with the percentage you see, how can you lower?
The loan term is one factor you have total control over. Most Midland car loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they usually have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you determine what might work for your budget.
If your credit is far from great, raising your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and the steps you can take now to raise it quickly. Your credit score will take some effort and time to build, but it's worth it for those lower Michigan auto loan rates.
Taking the time to hunt down the right lender can also help you secure 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 shop around and compare offers to find the best auto loan rate in Midland, MI — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get 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 the other to see if they can beat the interest rate.
Find the Best Auto Loan Rates in Midland, MI with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Midland, MI regardless of your credit score and the type of car you're buying. You can see up to four loans at once so you can find the best deal. Fill out our simple and secure online application, choose the best loan for you, and head to your Midland dealer to purchase a new ride. Apply today to see the current lowest interest rates!