How Are Chapel Hill, NC Car Loan Rates Determined?
Various factors impact your North Carolina car 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 high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Chapel Hill might 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 is and the more you spend over your loan’s term. A difference of just one or two percent could mean you spend hundreds more on interest.
Is There a Way to Lower My Chapel Hill Car Loan Rate?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you complete an application for a car loan in Chapel Hill, NC. 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 element you can change on your own. Most Chapel Hill auto loans 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 typically have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can handle a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you determine what you can afford.
If your credit is far from great, increasing your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. Your credit score may take some more time and work, but it's worth it to get those lower North Carolina car loan rates.
Waiting to find the right lender can also help you snag a lower rate. While lenders will consider the same information, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Chapel Hill, NC — even without the best credit or income. You don't want to go with the first offer you receive because there could be a better one right around the corner. Don't forget some lenders allow for negotiation, 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 Chapel Hill, NC with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Chapel Hill, NC no matter your credit score or the type of car you're buying. We'll present you with up to four loans at once so you can get 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. Apply now to check today's lowest interest rates!