What Determines Your Auto Loan Rate in Woodbridge, NJ?
Various factors affect your New Jersey auto loan interest 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Woodbridge dealer could mean a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the higher your monthly bill is and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Woodbridge, NJ?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before having to apply for a car loan in Woodbridge, NJ. If you've filled out your information and don't like the percentage you see, what can be done to lower it?
The loan term is one element you can change on your own. Most car loans in Woodbridge have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms will tempt many borrowers because they usually mean a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can handle a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you determine what you can afford.
If you have less than ideal 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 how you can quickly bring it up. It may take some effort and time to increase your credit score, but it's worth it to get those lower New Jersey car loan rates.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will consider the same information, you won't receive the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Woodbridge, NJ — even without a high income or credit score. 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 will negotiate, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Find the Best Auto Loan Rates in Woodbridge, NJ with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Woodbridge, NJ regardless of your credit score and the type of car you're buying. You can look at up to four loans at once so you can get the right deal. Complete our secure online application, choose the best loan for you, and head to your Woodbridge dealer to purchase a new ride. Apply now to check today's lowest interest rates!