How Are Car Loan Rates in Columbia, SC Calculated?
Several factors influence your South Carolina car loan interest 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Columbia dealer might lead to a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over your loan’s term. Even a rate one or two percent higher could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Columbia, SC?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before you start applying for auto loans in Columbia, SC. If you've put in your information and aren't liking the percentage you see, how can you lower?
The loan term is one thing you can control. Most Columbia auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If you can afford a bigger monthly payment, choosing a shorter term is a good move. 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 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 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 worth it for those lower South Carolina auto loan rates.
Waiting to find the right lender can also help you secure a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Columbia, SC — even without a high income or credit score. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. And, some lenders leave room for negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Find the Best Auto Loan Rates in Columbia, SC with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Columbia, SC regardless of what type of vehicle you're buying or your credit score. You can see up to four loans at once so you can find the perfect loan. Fill out our simple and secure online application, pick the loan that works best for you, and head down to a dealer in Columbia to purchase a new ride. Apply now to check today's lowest interest rates!