How Are Portland, MI Auto Loan Rates Determined?
Various factors affect your Michigan auto loan interest rate, including the loan amount, your credit score, your income, the age of the car, the down payment, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Portland dealer could result in a higher interest rate. But why worry about a high interest rate? The higher your interest rate gets, the higher your monthly bill is and the more you spend over the term of your loan. Even a rate one or two percent higher could mean you spend hundreds more on interest.
Can I Lower My Car Loan Rate in Portland, MI?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before having to apply for a car loan in Portland, MI. If you've filled out your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one factor you can control. Most car loans in Portland are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms because the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If you can afford a higher monthly payment, it's smart 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 you might be able to afford.
If you have less than ideal credit, increasing your score could bring your interest rate down. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take to bring it up fast. Your credit score will take some effort and time to build, but it's all worth it for getting those lower auto loan rates in Michigan.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will look at the same information, you'll likely receive a different interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Portland, MI — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because a better one could be right around the corner. And, 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 Portland, MI with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Portland, MI regardless of what type of vehicle you're buying or your credit score. You can look at up to four loans at once so you can find the perfect loan. Simply complete our secure online application, select the best loan for you, and visit your Portland dealer to purchase a new car. Apply today to see the current lowest interest rates!