How Are Eden Prairie, MN Auto Loan Rates Determined?
A handful of factors affect your Minnesota 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 Eden Prairie dealer could lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly bill is and the more you spend in total. Even a rate one or two percent higher could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Eden Prairie, MN?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you start applying for auto loans in Eden Prairie, MN. If you've plugged in your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one element you can change on your own. Most Eden Prairie car loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers are drawn in by longer terms because they typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a bigger monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be based on different interest rates and terms to help you decide what might work for your budget.
If you have less than stellar credit, boosting your score could lower 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. 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 Minnesota.
Waiting to find the right lender can also help you snag a lower rate. While lenders take the same information into consideration, you won't receive the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Eden Prairie, 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 might be a better one just around the corner. And, some lenders are open to negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Eden Prairie, MN with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Eden Prairie, MN no matter your credit score or the type of car you're buying. We'll show you up to four loans at once so you can get the right deal. Fill out our simple and secure online application, pick the loan that works best for you, and visit your Eden Prairie dealer to purchase a new car. Apply today to see the current lowest interest rates!