What Determines Your Auto Loan Rate in Shakopee, MN?
A handful of factors affect your Minnesota car loan interest rate, including your income, your credits core, the loan amount, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Shakopee dealership could mean a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the higher your monthly payment is and the more you spend in total. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Shakopee, MN?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you complete an application for a car loan in Shakopee, MN. If you've supplied your information and aren't happy with the percentage you see, how can you lower?
The loan term is one factor you have a lot of control over. Most auto loans in Shakopee have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms attract many borrowers because they usually have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be depending on 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 will help you understand what goes into a credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, 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 secure a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Shakopee, 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 a better one could be right around the corner. Keep in mind some lenders are open to negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
See the Best Auto Loan Rates in Shakopee, MN with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Shakopee, MN regardless of what type of vehicle 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, pick the loan that works best for you, and visit your Shakopee dealer to purchase a new car. Apply today to see the current lowest interest rates!