How Are Car Loan Rates in Somerville, NJ Calculated?
Several factors influence your New Jersey car loan rate, including your credit score, the amount of the loan, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Somerville dealership could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly bill is and the more you spend over your loan’s term. Even a rate one or two percent higher could mean spending hundreds more overall.
How Do I Get a Lower Car Loan Interest in Somerville, NJ?
With tools like our Interest Rate Estimator, you can get a feel for what your rate might look like before you complete an application for a car loan in Somerville, NJ. If you've plugged in your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one thing you can change on your own. Most auto loans in Somerville have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because they usually have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like based on different interest rates and terms to help you see what might be affordable.
If you have less than ideal credit, raising your score could lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and how you can quickly bring it up. Your credit score may take some more time and work, but it'll be worth it once you see those lower New Jersey auto loan rates.
Taking some time to find the right lender can also help you secure a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Somerville, NJ — even if you don't have the best credit or income. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Plus, some lenders are open to negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Find the Best Auto Loan Rates in Somerville, NJ with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Somerville, 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 right deal. Fill out our simple and secure online application, choose the best loan for you, and purchase a new ride from your {City}} dealer. Don't wait to apply and check today's lowest interest rates!