How Are Hillsboro, OR Car Loan Rates Determined?
A handful of factors impact your Oregon auto loan rate, including your credit score, the amount of the loan, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Hillsboro dealership might lead to a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the more you pay each month and the more you spend over the life of your loan. A difference of one or two percent might not seem like much, but it could mean you spend hundreds more on interest.
Is There a Way to Lower My Hillsboro Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you start applying for auto loans in Hillsboro, OR. If you've plugged in your information and don't like the percentage you see, what steps can you take to lower it?
The loan term is one thing you can control. Most Hillsboro car 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 they typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford 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, 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 will take some effort and time to build, but it'll be worth it once you see those lower Oregon auto loan rates.
Waiting to find the right lender can also help you snag a lower rate. While lenders will consider the same information, 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 Hillsboro, OR — even without the best credit or income. 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 are open to negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in Hillsboro, OR with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Hillsboro, OR 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 find the perfect loan. Fill out our secure online application, select the best loan for you, and head down to a dealer in Hillsboro to purchase a new ride. Apply now to check today's lowest interest rates!