What Determines Your Auto Loan Rate in Lakeville, MN?
Several factors influence 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Lakeville dealer could mean a higher interest rate. But why worry about a high interest rate? The higher your interest rate, the higher your monthly payment is and the more you spend over your loan’s term. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Lakeville, MN?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might look like before having to apply for a car loan in Lakeville, 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 thing you have total control over. Most Lakeville auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because they usually mean a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you determine what might be affordable.
If your credit is far from great, raising your score could help lower 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 today to bring it up quickly. It may take some effort and time to increase your credit score, but it's worth it for 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, 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 Lakeville, MN — even without the best credit or income. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. Don't forget some lenders will negotiate, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Lakeville, MN
myAutoloan is here to help you get the lowest auto loan rates in Lakeville, MN no matter what type of car you're buying or your credit score. We'll present you with up to four loans at once so you can get the right deal. Simply complete our secure online application, choose the loan that looks best to you, and head to your Lakeville dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!