What Determines Your Auto Loan Rate in Woodbury, NJ?
Several factors affect your New Jersey car loan interest rate, including the loan amount, your credit score, your income, the down payment, your loan's term (the length of the loan), and the car's age. A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Woodbury dealer might lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the more you pay each month and the more you spend over your loan’s term. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Woodbury, NJ?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before having to apply for a car loan in Woodbury, NJ. If you've supplied your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one element you can control. Most car loans in Woodbury have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because the monthly payment is usually lower. But longer terms are also likely to come with higher interest rates. If you can afford a bigger monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be based on different interest rates and terms to help you determine what you might be able to afford.
If your credit is far from great, raising your score could decrease 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 today to bring it up quickly. Your credit score will take some effort and time to build, but it's all worth it for getting those lower auto loan rates in New Jersey.
Taking some time to find the right lender can also help you secure a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Woodbury, NJ — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because a better one might be waiting just around the corner. Keep in mind 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 Woodbury, NJ with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Woodbury, NJ regardless of what type of vehicle you're buying or your credit score. You can look at up to four loans at once so you can find the best deal. Complete our secure online application, choose the loan that looks best to you, and head to your Woodbury dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!