How Are Utica, MI Auto Loan Rates Determined?
Various factors impact your Michigan auto loan interest 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Utica dealer could result in a higher interest rate. But is a high interest rate so bad? The higher of an interest rate you have, the more you pay each month 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 overall.
How Do I Lower My Auto Loan Rate in Utica, MI?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you complete an application for a car loan in Utica, MI. If you've supplied your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one aspect you can control. Most auto loans in Utica are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they usually have a lower monthly payment. But longer terms are also likely to 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 with different terms and interest rates to help you figure out what might work for your budget.
If your credit is less than stellar, improving your score could lower 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 will take some effort and time to build, 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 snag a lower rate. While lenders will look at the same information, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Utica, MI — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. And, 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.
Discover the Best Auto Loan Rates in Utica, MI with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Utica, 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 simple and secure online application, pick the loan that works best for you, and head down to a dealer in Utica to purchase a new ride. Don't wait to apply and check today's lowest interest rates!