What Determines Your Auto Loan Rate in Pinconning, MI?
Various factors influence your Michigan car loan interest rate, including your credit score, the amount of the loan, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Pinconning might lead to 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 the term of your loan. Just one or two percent more could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in Pinconning, 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 Pinconning, MI. If you've put in 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 total control over. Most Pinconning auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms 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 your possible monthly payment with different terms and interest rates to help you decide what might be affordable.
If your credit is less than stellar, increasing your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take today to bring it up quickly. 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.
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 compare offers and shop around for the best auto loan rate in Pinconning, MI — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Don't forget some lenders allow for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Find the Best Auto Loan Rates in Pinconning, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Pinconning, MI regardless of what type of vehicle you're buying or your credit score. We'll show you up to four loans at once so you can find the best deal. Complete our secure online application, choose the best loan for you, and head to your Pinconning dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!