How Are Columbia, MO Car Loan Rates Determined?
A handful of factors contribute to your Missouri auto loan rate, including your income, your credits core, the loan amount, the age of the car, the down payment, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Columbia dealer could lead to a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the higher your monthly payment becomes and the more you spend over the life of your loan. Just one or two percent more could mean you spend hundreds more on interest.
How Do I Lower My Auto Loan Rate in Columbia, MO?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might look like before having to apply for a car loan in Columbia, MO. 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 can change on your own. Most Columbia auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers are drawn in by longer terms because they typically 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, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be based on different interest rates and terms to help you determine what you can afford.
If your credit is less than stellar, raising your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. It may take some effort and time to increase your credit score, but it'll be worth it once you see those lower Missouri auto loan rates.
Putting effort into finding the right lender can also help you snag a lower rate. While lenders will look at the same information, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Columbia, MO — even without the best credit or income. You don't want to choose the first offer you get because a better one might be waiting just around the corner. Keep in mind some lenders are open to negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Find the Best Auto Loan Rates in Columbia, MO with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Columbia, MO no matter what type of car you're buying or your credit score. You can see 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 down to a dealer in Columbia to purchase a new ride. Apply now to see today's lowest interest rates!