How Are Duluth, MN Car Loan Rates Determined?
A handful of factors influence your Minnesota car 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Duluth dealer could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly payment becomes and the more you spend in total. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Duluth, MN?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before having to apply for a car loan in Duluth, MN. If you've plugged in your information and aren't happy with the percentage you see, how can you lower?
The loan term is one aspect you have total control over. Most car loans in Duluth have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because the monthly payment is usually lower. But longer terms are also likely to come with higher interest rates. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you see what might be affordable.
If your credit is far from great, increasing your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and how you can quickly bring it up. Your credit score may take some more time and work, but it's worth it for those lower Minnesota auto loan rates.
Putting effort into finding the right lender can also help you snag a lower rate. While lenders will consider the same information, you won't see the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Duluth, 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. Plus, some lenders allow for negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Duluth, MN with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Duluth, MN 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 right deal. Fill out our secure online application, choose the loan that looks best to you, and purchase a new ride from your {City}} dealer. Don't wait to apply and check today's lowest interest rates!