How Are Sturgis, MI Car Loan Rates Determined?
Several factors impact your Michigan car loan 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 Sturgis dealer could mean a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the more you pay each month and the more you spend in total. A difference of just one or two percent could mean spending hundreds more overall.
How Do I Get a Lower Car Loan Interest in Sturgis, MI?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you begin applying for auto loans in Sturgis, MI. If you've filled out your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one factor you have a lot of control over. Most auto loans in Sturgis 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. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like based on different interest rates and terms to help you see what you might be able to afford.
If your credit is less than stellar, improving 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 worth it for those lower Michigan auto loan rates.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders will consider 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 Sturgis, MI — even without the best credit or income. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. Keep in mind some lenders allow for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
See the Best Auto Loan Rates in Sturgis, MI with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Sturgis, MI no matter what type of car you're buying or your credit score. We'll present you with up to four loans at once so you can get the right deal. Simply complete our secure online application, choose the loan that looks best to you, and visit your Sturgis dealer to purchase a new car. Apply now to see today's lowest interest rates!