How Are Paramus, NJ Car Loan Rates Determined?
Several factors impact your New Jersey auto loan rate, including the loan amount, your credit score, 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, poor credit score, or choosing an older vehicle at your Paramus dealership could mean a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment becomes and the more you spend in total. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Paramus Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you complete an application for a car loan in Paramus, NJ. If you've supplied your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one thing you have a lot of control over. Most Paramus car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers 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 bigger monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment based on different interest rates and terms to help you figure out what might be affordable.
If your credit is far from great, improving your score could 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. It may take some time and work to better your credit score, 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 get a lower rate. While lenders will consider the same information, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Paramus, NJ — 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 there could be a better one right around the corner. And, some lenders leave room 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 Paramus, NJ with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Paramus, NJ no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can find the right deal. Simply complete our secure online application, pick the loan that works best for you, and visit your Paramus dealer to purchase a new car. Apply now to check today's lowest interest rates!