What Determines Your Auto Loan Rate in Petoskey, MI?
Several factors impact your Michigan auto loan interest 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, low credit score, or purchasing an older car from a dealer in Petoskey might lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the higher your monthly payment becomes and the more you spend over your loan’s term. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Petoskey, MI?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before you complete an application for a car loan in Petoskey, MI. If you've plugged in your information and don't like 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 Petoskey auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms will tempt many borrowers because they usually mean a lower monthly payment. However, longer terms also tend to come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different interest rates and terms to help you figure out what you might be able to afford.
If you have less than ideal credit, boosting your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and how you can quickly bring it up. Your credit score may take some more time and work, but it'll be worth it once you see those lower Michigan auto loan rates.
Taking some time to find the right lender can also help you get 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 Petoskey, MI — even without the best credit or income. You don't want to choose the first offer you get because there might be a better one just around the corner. Plus, some lenders leave room 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 Petoskey, MI with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Petoskey, MI regardless of what type of vehicle you're buying or your credit score. We'll present you with up to four loans at once so you can find the perfect loan. Fill out our simple and secure online application, select the best loan for you, and head down to a dealer in Petoskey to purchase a new ride. Apply now to check today's lowest interest rates!