How Are Chattanooga, TN Car Loan Rates Determined?
A handful of factors contribute to your Tennessee car loan rate, including the loan amount, your credit score, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Chattanooga dealership could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly payment is and the more you spend over your loan’s term. A difference of just one or two percent could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in Chattanooga, TN?
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 Chattanooga, TN. If you've put in your information and aren't happy with the percentage you see, what can you do to lower it?
The loan term is one aspect you can control. Most car loans in Chattanooga have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because they usually mean 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 estimates what your monthly payment could be with different interest rates and terms to help you figure out what might be affordable.
If you have less than stellar credit, improving your score could lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take today to bring it up quickly. Your credit score will take some effort and time to build, but it's worth it to get those lower Tennessee car loan rates.
Waiting to find the right lender can also help you achieve a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Chattanooga, TN — even if you don't have the best credit or income. You don't want to choose the first offer you get because there might be a better one just around the corner. And, some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
See the Best Auto Loan Rates in Chattanooga, TN with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Chattanooga, TN no matter what type of car you're buying or your credit score. We'll show you up to four loans at once so you can find the best deal. Complete our secure online application, choose the best loan for you, and head to your Chattanooga dealer to purchase a new ride. Apply now to check today's lowest interest rates!