What Determines Your Auto Loan Rate in Austin, MN?
Various factors impact your Minnesota auto loan interest rate, including your income, your credits core, the loan amount, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Austin could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the higher your monthly payment becomes and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Austin Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before having to apply for a car loan in Austin, MN. If you've filled out your information and aren't liking the percentage you see, how can you lower?
The loan term is one aspect you have total control over. Most car loans in Austin 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 mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can handle a higher monthly payment, it's smart 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 determine what might work for your budget.
If your credit is far from great, raising 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. Your credit score may take some more time and work, but it'll be worth it once you see those lower Minnesota auto loan rates.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will use the same information, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Austin, MN — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive because there could be a better one right around the corner. Keep in mind some lenders leave room 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.
Find the Best Auto Loan Rates in Austin, MN with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Austin, MN no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can find the best deal. Fill out our simple and secure online application, choose the best loan for you, and visit your Austin dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!