How Are Car Loan Rates in Rochester, MN Calculated?
Various factors influence your Minnesota auto 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 poor credit score, low income, or buying an older vehicle from a dealer in Rochester could mean a higher interest rate. But why worry about a high interest rate? The higher your interest rate, the higher your monthly payment becomes and the more you spend in total. Even a rate one or two percent higher could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Rochester, MN?
Online tools like our Interest Rate Estimator will give you a feel for what your rate could be before you start applying for auto loans in Rochester, 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 control. Most Rochester auto loans 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 afford a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different interest rates and terms to help you determine what you might be able to afford.
If your credit is less than stellar, raising 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 will use the same information, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Rochester, MN — even if you don't have the highest income or best credit. You shouldn't automatically choose the first offer you get 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 the next to see if they'll beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Rochester, MN
myAutoloan wants to help you find the lowest auto loan rates in Rochester, 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 find the best deal. Simply complete our secure online application, select the best loan for you, and visit your Rochester dealer to purchase a new car. Apply now to see today's lowest interest rates!