How Are Troy, MI Auto Loan Rates Determined?
A handful of factors contribute to your Michigan auto loan rate, including your credit score, the amount of the loan, your income, the age of the car, the down payment, and your loan's term (the length of the loan). A poor credit score, low income, or buying an older vehicle from a dealer in Troy might lead to a higher interest rate. But why worry about a high interest rate? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over the life of your loan. A difference of just one or two percent could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Troy, MI?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might look like before having to apply for a car loan in Troy, MI. If you've plugged in your information and don't like the percentage you see, what can be done to lower it?
The loan term is one element you have total control over. Most car loans in Troy have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because they typically have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a bigger monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you decide what you can afford.
If you have less than ideal credit, boosting 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 all worth it for getting those lower auto loan rates in Michigan.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Troy, MI — even without a high income or credit score. You shouldn't go with the first offer you receive because there could be a better one right around the corner. And, some lenders allow for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Discover the Best Auto Loan Rates in Troy, MI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Troy, MI regardless of what type of vehicle you're buying or your credit score. We'll show you up to four loans at once so you can find the best deal. Fill out our simple and secure online application, pick the loan that works best for you, and head to your Troy dealer to purchase a new ride. Apply now to see today's lowest interest rates!