How Are Car Loan Rates in Novi, MI Calculated?
Several factors contribute to your Michigan auto loan rate, including the loan amount, your credit score, your income, 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 Novi dealership could mean a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the more you pay each month and the more you spend over your loan’s term. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Novi, MI?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before you begin applying for auto loans in Novi, MI. If you've plugged in your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one aspect you have total control over. Most Novi auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can handle 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 figure out what might be affordable.
If your credit is far from great, raising your score could lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. Your credit score will take some effort and time to build, 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 achieve a lower rate. While lenders will consider the same information, each one might give you a different interest rate. You need to shop around and compare offers to find the best auto loan rate in Novi, MI — even if you don't have the best credit or income. You shouldn't go with the first offer you receive because there might be a better one just around the corner. Keep in mind some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Find the Best Auto Loan Rates in Novi, MI with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Novi, MI no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can get the right deal. Complete our secure online application, choose the best loan for you, and visit your Novi dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!