What Determines Your Auto Loan Rate in Franklin, NC?
Various factors affect your North Carolina auto loan interest rate, Including your credit score, your income, the amount of the loan, the car's age, the down payment, and the length of the loan (your loan's term). A poor credit score, low income, or buying an older vehicle from a dealer in Franklin could lead to a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly bill is 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 you spend hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Franklin, NC?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you start applying for auto loans in Franklin, NC. If you've plugged in your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one element you have a lot of control over. Most auto loans in Franklin have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms attract many borrowers because they usually have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a bigger monthly payment, it's wise 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 might work for your budget.
If your credit is less than stellar, increasing your score could bring your interest rate down. Use our Guide to Better Credit for Auto Financing to better understand 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 for those lower North Carolina auto loan rates.
Taking some time to find the right lender can also help you get a lower rate. While lenders take the same information into consideration, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Franklin, NC — 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 could be right around the corner. And, some lenders will negotiate, 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 Franklin, NC with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Franklin, NC 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 find the perfect loan. Complete our secure online application, select the best loan for you, and visit your Franklin dealer to purchase a new car. Apply today to see the current lowest interest rates!