How Are Rochester Hills, MI Auto Loan Rates Determined?
Various factors affect 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Rochester Hills dealer could lead to a higher interest rate. But is a high interest rate so bad? The higher of an interest rate you have, the higher your monthly bill is and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in Rochester Hills, MI?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might look like before you begin applying for auto loans in Rochester Hills, MI. If you've supplied your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one factor you have a lot of control over. Most Rochester Hills auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because they typically have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you see what might be affordable.
If your credit is less than stellar, raising your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's worth it to get those lower Michigan car loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will consider the same information, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Rochester Hills, MI — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive because there might be a better one just around the corner. And, some lenders allow for negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Rochester Hills, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Rochester Hills, MI no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can find the right deal. Simply complete our secure online application, pick the loan that works best for you, and purchase a new ride from your {City}} dealer. Don't wait to apply and check today's lowest interest rates!