How Are Stevensville, MI Auto Loan Rates Determined?
A handful of factors impact your Michigan car loan rate, including the loan amount, your credit score, 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 Stevensville dealership might lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend over your loan’s term. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Stevensville, MI?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before having to apply for a car loan in Stevensville, 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 element you can control. Most auto loans in Stevensville have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because they typically have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you figure out what you can afford.
If you have less than ideal credit, increasing your score could lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. 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 the time to hunt down the right lender can also help you achieve 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 Stevensville, MI — even if you don't have the highest income or best credit. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. Don't forget some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
See the Best Auto Loan Rates in Stevensville, MI with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Stevensville, 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. Simply complete our secure online application, choose the best loan for you, and purchase a new ride from your {City}} dealer. Apply now to check today's lowest interest rates!