How Are Edina, MN Car Loan Rates Determined?
A handful of factors impact your Minnesota auto loan interest rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Edina could mean a higher interest rate. But why worry about a high interest rate? The higher your interest rate is, the higher your monthly bill is and the more you spend over your loan’s term. Just one or two percent more could mean you spend hundreds more on interest.
Is There a Way to Lower My Edina Car Loan Rate?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you start applying for auto loans in Edina, MN. If you've supplied your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one factor you can control. Most car loans in Edina have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. 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 you can handle a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you figure out what might work for your budget.
If your credit is less than stellar, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's worth it to get those lower Minnesota car loan rates.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders will look at the same information, you'll likely receive a different interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Edina, MN — even without the best credit or income. You shouldn't go with the first offer you receive because a better one might be waiting just around the corner. Don't forget some lenders allow 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.
See the Best Auto Loan Rates in Edina, MN with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Edina, MN 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 get the right deal. Complete our secure online application, select the best loan for you, and visit your Edina dealer to purchase a new car. Apply today to see the current lowest interest rates!