How Are Spearfish, SD Auto Loan Rates Determined?
A handful of factors affect your South Dakota auto loan rate, including your credit score, the amount of the loan, your income, the age of the car, the down payment, and your loan's term (the length of the loan). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Spearfish dealer could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate is, the higher your monthly payment becomes and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more on interest.
Is There a Way to Lower My Spearfish Car Loan Rate?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might look like before you complete an application for a car loan in Spearfish, SD. If you've filled out your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one factor you have total control over. Most Spearfish auto loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers are drawn in by longer terms because they typically have a lower monthly payment. But longer terms are also likely to come with higher interest rates. If you can afford a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different terms and interest rates to help you see what you can afford.
If your credit is far from great, improving 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. Your credit score will take some effort and time to build, but it's all worth it for getting those lower auto loan rates in South Dakota.
Taking some time to find the right lender can also help you get a lower rate. While lenders will consider the same information, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Spearfish, SD — even if you don't have the highest income or best credit. You don't want to choose the first offer you get because a better one could be right around the corner. Plus, some lenders will negotiate, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Discover the Best Auto Loan Rates in Spearfish, SD with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Spearfish, SD no matter what type of car you're buying or your credit score. We'll present you with up to four loans at once so you can find the best deal. Fill out our secure online application, choose the best loan for you, and head down to a dealer in Spearfish to purchase a new ride. Don't wait to apply and check today's lowest interest rates!