How Are Car Loan Rates in Plymouth, MI Calculated?
Many factors affect 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, low credit score, or purchasing an older car from a dealer in Plymouth could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the more you pay each month and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Plymouth, MI?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you begin applying for auto loans in Plymouth, MI. If you've put in your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one element you have total control over. Most car loans in Plymouth have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). 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, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different terms and interest rates to help you figure out 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 how you can quickly bring it up. It may take some effort and time to increase your credit score, 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 secure a lower rate. While lenders will consider the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Plymouth, MI — even if you don't have 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. Don't forget some lenders will negotiate, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Discover the Best Auto Loan Rates in Plymouth, MI with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Plymouth, 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, choose the loan that looks best to you, and head to your Plymouth dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!