What Determines Your Auto Loan Rate in Rochester, MI?
Many factors affect your Michigan car loan rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Rochester dealership might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend in total. Even a rate one or two percent higher could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Rochester, 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 Rochester, MI. If you've filled out your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one thing you have total control over. Most auto loans in Rochester have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. But longer terms tend to also 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 estimates what your monthly payment could be depending on different interest rates and terms to help you figure out what you might be able to afford.
If you have less than ideal credit, raising your score could decrease 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. 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.
Waiting to find the right lender can also help you achieve a lower rate. While lenders will look at the same information, each one might give you a different interest rate. You need to shop around and compare offers to find the best auto loan rate in Rochester, MI — even without a high income or credit score. You shouldn't go with the first offer you receive because there might be a better one just around the corner. Don't forget some lenders will negotiate, 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 Rochester, MI with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Rochester, MI no matter your credit score or the type of car you're buying. We'll present you with up to four loans at once so you can find the best deal. Fill out our secure online application, select the best loan for you, and visit your Rochester dealer to purchase a new car. Apply now to see today's lowest interest rates!