How Are Clovis, NM Auto Loan Rates Determined?
A handful of factors influence your New Mexico auto loan interest 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Clovis dealer could result in a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend over the term of your loan. Just one or two percent more could mean you spend hundreds more on interest.
Is There a Way to Lower My Clovis Car Loan Rate?
Online tools like our Interest Rate Estimator will give you a feel for what your rate could be before you complete an application for a car loan in Clovis, NM. If you've plugged in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one element you can change on your own. Most car loans in Clovis have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because they usually have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford a bigger monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you see what you can afford.
If your credit is far from great, improving your score could help lower 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. It may take some effort and time to increase your credit score, but it's all worth it for getting those lower auto loan rates in New Mexico.
Taking some time to find the right lender can also help you secure a lower rate. While lenders will consider 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 Clovis, NM — even without a high income or credit score. You don't want to choose the first offer you get because a better one might be waiting just around the corner. Keep in mind 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.
Discover the Best Auto Loan Rates in Clovis, NM with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Clovis, NM no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can get the right deal. Fill out our simple and secure online application, pick the loan that works best for you, and visit your Clovis dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!