How Are Aberdeen, SD Auto Loan Rates Determined?
Many factors affect your South Dakota 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 Aberdeen could mean a higher interest rate. But why worry 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 the term of your loan. A difference of just one or two percent could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Aberdeen, SD?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might look like before having to apply for a car loan in Aberdeen, SD. If you've filled out your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one thing you can change on your own. Most Aberdeen auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms will tempt many borrowers because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher 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 figure out what might be affordable.
If you have less than stellar credit, increasing your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from 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 to get those lower South Dakota car loan rates.
Waiting to find the right lender can also help you snag 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 Aberdeen, SD — even without the best credit or income. You shouldn't 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 another to see if they're willing to beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in Aberdeen, SD
myAutoloan is committed to helping you find the lowest auto loan rates in Aberdeen, SD 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 best deal. Simply complete our secure online application, choose the best loan for you, and visit your Aberdeen dealer to purchase a new car. Apply now to check today's lowest interest rates!