What Determines Your Auto Loan Rate in Detroit Lakes, MN?
Several factors contribute to your Minnesota car loan interest rate, including your credit score, the amount of the loan, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Detroit Lakes dealership could lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate is, the higher your monthly bill is and the more you spend in total. Even a rate one or two percent higher could mean you spend hundreds more on interest.
Is There a Way to Lower My Detroit Lakes Car Loan Rate?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before having to apply for a car loan in Detroit Lakes, MN. If you've plugged in your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one aspect you have total control over. Most Detroit Lakes auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). 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 you can afford a bigger monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you figure out what might be affordable.
If you have less than stellar credit, improving your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take today to bring it up quickly. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in Minnesota.
Waiting to find the right lender can also help you get a lower rate. While lenders will look at 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 Detroit Lakes, MN — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because there might be a better one just around the corner. And, some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Detroit Lakes, MN
myAutoloan wants to help you find the lowest auto loan rates in Detroit Lakes, MN no matter your credit score or the type of car you're buying. You can see 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 head to your Detroit Lakes dealer to purchase a new ride. Apply today to see the current lowest interest rates!