How Are Bloomfield, NJ Auto Loan Rates Determined?
A handful of factors affect your New Jersey car loan rate, including your credit score, the amount of the loan, your income, the age of the car, the down payment, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Bloomfield might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate is, the more you pay each month and the more you spend over the life of your loan. A difference of just one or two percent could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Bloomfield, NJ?
Online tools like our Interest Rate Estimator will give you a feel for what your rate could be before having to apply for a car loan in Bloomfield, NJ. If you've put in your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one factor you can change on your own. Most Bloomfield car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers take longer terms because the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If you can afford a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like depending on different interest rates and terms to help you determine what you might be able to afford.
If you have less than stellar credit, improving your score could bring your interest rate down. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take today to bring it up quickly. Your credit score may take some more time and work, but it's worth it to get those lower New Jersey car loan rates.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will consider 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 Bloomfield, NJ — 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 your offer from one lender to another to see if they're willing to give an even lower rate.
See the Best Auto Loan Rates in Bloomfield, NJ with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Bloomfield, NJ 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 best deal. Fill out our secure online application, choose the best loan for you, and visit your Bloomfield dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!