What Determines Your Auto Loan Rate in Covington, TN?
Several factors contribute to your Tennessee auto loan interest rate, Including your credit score, your income, the amount of the loan, the down payment, your loan's term (the length of the loan), and the car's age. A poor credit score, low income, or buying an older vehicle from a dealer in Covington could lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate is, the more you pay each month 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 Get a Lower Car Loan Interest in Covington, TN?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might look like before having to apply for a car loan in Covington, TN. If you've filled out your information and aren't happy with the percentage you see, how can you lower?
The loan term is one factor you have total control over. Most Covington car loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms because the monthly payment is usually lower. But longer terms are also likely to come with higher interest rates. If your budget allows for a higher monthly payment, it's smart to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you decide what might be affordable.
If your credit is less than stellar, boosting your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's worth it for those lower Tennessee auto loan rates.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders will use the same information, you won't see the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Covington, TN — even without the best credit or income. You don't want to choose the first offer you get because a better one might be waiting just around the corner. Plus, some lenders are open to negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
See the Best Auto Loan Rates in Covington, TN with myAutoloan
myAutoloan is committed to helping you find the lowest auto loan rates in Covington, TN no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can find the right deal. Simply complete our secure online application, choose the loan that looks best to you, and head down to a dealer in Covington to purchase a new ride. Don't wait to apply and check today's lowest interest rates!