How Are Car Loan Rates in Union, NJ Calculated?
Several factors affect your New Jersey car loan interest rate, including your income, your credits core, the loan amount, the car's age, the down payment, and the length of the loan (your loan's term). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Union dealer 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 the term of your loan. Even a rate one or two percent higher could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Union, NJ?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before you start applying for auto loans in Union, 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 element you have a lot of control over. Most Union 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 usually have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can handle a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different interest rates and terms to help you figure out what might be affordable.
If you have less than stellar credit, raising your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through 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 to get those lower New Jersey car loan rates.
Taking the time to hunt down the right lender can also help you secure a lower rate. While lenders take the same information into consideration, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Union, NJ — even if you don't have the highest income or best credit. You don't want to choose the first offer you get because there could be a better one right around the corner. Don't forget 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 Union, NJ with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Union, NJ no matter what type of car you're buying or your credit score. We'll show you up to four loans at once so you can find the best deal. Fill out our secure online application, choose the loan that looks best to you, and head down to a dealer in Union to purchase a new ride. Apply now to see today's lowest interest rates!