What Determines Your Auto Loan Rate in Newton, NJ?
A handful of factors affect your New Jersey car loan interest rate, including your credit score, the amount of the loan, your income, the down payment, the age of the car, 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 Newton could lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the higher your monthly payment becomes and the more you spend over your loan’s term. Even a rate one or two percent higher could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Newton, NJ?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might look like before you complete an application for a car loan in Newton, NJ. If you've filled out your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one factor you have total control over. Most car loans in Newton 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 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, choosing a shorter term is a good move. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you determine what might work for your budget.
If you have less than ideal credit, improving your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take to bring it up fast. Your credit score may take some more time and work, but it's worth it for those lower New Jersey auto loan rates.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Newton, NJ — even without a high income or credit score. You shouldn't automatically choose the first offer you get because a better one could be 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.
Use myAutoloan to Check the Best Auto Loan Rates in Newton, NJ
myAutoloan wants to help you find the lowest auto loan rates in Newton, NJ 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. Complete our secure online application, choose the best loan for you, and head to your Newton dealer to purchase a new ride. Apply today to see the current lowest interest rates!