How Are Car Loan Rates in Sioux Falls, SD Calculated?
A handful of factors affect your South Dakota car loan rate, including the loan amount, your credit score, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A poor credit score, low income, or buying an older vehicle from a dealer in Sioux Falls could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly bill is and the more you spend over the term of your loan. Just one or two percent more could mean you spend hundreds more on interest.
Is There a Way to Lower My Sioux Falls Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you start applying for auto loans in Sioux Falls, SD. If you've filled out your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one factor you have a lot of control over. Most auto loans in Sioux Falls have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because the monthly payment is usually lower. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you decide what you can afford.
If your credit is far from great, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in South Dakota.
Putting effort into finding the right lender can also help you secure a lower rate. While lenders take the same information into consideration, you'll likely receive a different interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Sioux Falls, SD — even without the best credit or income. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. And, some lenders allow for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Find the Best Auto Loan Rates in Sioux Falls, SD with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Sioux Falls, SD no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can get the right deal. Simply complete our secure online application, choose the best loan for you, and purchase a new ride from your {City}} dealer. Apply today to see the current lowest interest rates!