How Are South Haven, MI Car Loan Rates Determined?
Many factors impact your Michigan auto loan rate, Including your credit score, your income, the amount of the loan, 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 South Haven might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the higher your monthly bill is and the more you spend over the term of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
Is There a Way to Lower My South Haven Car Loan Rate?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before you start applying for auto loans in South Haven, MI. If you've put in your information and don't like the percentage you see, how can you lower?
The loan term is one thing you can control. Most car loans in South Haven are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms will tempt many borrowers because they usually have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you decide what you might be able to afford.
If your credit is less than stellar, increasing your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take to bring it up fast. It may take some time and work to better your credit score, but it's worth it for 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 use the same information, you won't receive the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in South Haven, 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. Keep in mind some lenders leave room for negotiation, 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 South Haven, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in South Haven, MI regardless of your credit score and the type of car you're buying. You can look at up to four loans at once so you can find the right deal. Fill out our secure online application, pick the loan that works best for you, and head down to a dealer in South Haven to purchase a new ride. Apply now to check today's lowest interest rates!