How Are Car Loan Rates in Fairborn, OH Calculated?
Many factors contribute to your Ohio auto loan interest rate, including your credit score, the amount of the loan, your income, 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 Fairborn might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the higher your monthly payment is and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Fairborn, OH?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you complete an application for a car loan in Fairborn, OH. If you've put in your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one thing you can change on your own. Most Fairborn auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because the monthly payment is usually lower. But longer terms are also likely to come with higher interest rates. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you see what might work for your budget.
If your credit is far from great, raising your score could lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's worth it for those lower Ohio auto loan rates.
Putting effort into finding the right lender can also help you achieve 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 Fairborn, OH — even if you don't have the highest income or best credit. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. And, 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 Fairborn, OH with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Fairborn, OH regardless of your credit score and the type of car you're buying. You can see up to four loans at once so you can find the perfect loan. Fill out our simple and secure online application, choose the loan that looks best to you, and visit your Fairborn dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!