How Are Car Loan Rates in Minneapolis, MN Calculated?
Various factors affect your Minnesota car loan interest rate, including your income, your credits core, the loan amount, the down payment, your loan's term (the length of the loan), and the car's age. A poor credit score, low income, or buying an older vehicle from a dealer in Minneapolis might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the more you pay each month and the more you spend over the term of your loan. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Minneapolis, MN?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you complete an application for a car loan in Minneapolis, MN. If you've filled out your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one factor you can change on your own. Most Minneapolis auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms because they usually have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a bigger monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you determine what you can afford.
If you have less than stellar credit, improving your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and the steps you can take now to raise it quickly. Your credit score will take some effort and time to build, 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 achieve a lower rate. While lenders take the same information into consideration, you won't see the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Minneapolis, 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 could be a better one right 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.
See the Best Auto Loan Rates in Minneapolis, MN with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Minneapolis, MN no matter what type of car you're buying or your credit score. You can look at up to four loans at once so you can find the right deal. Complete our secure online application, select the best loan for you, and head to your Minneapolis dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!