How Are Madison, TN Car Loan Rates Determined?
Several factors affect your Tennessee auto loan interest 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 high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Madison dealership could mean a higher interest rate. But what's so bad about a high interest rate? The higher of an interest rate you have, the higher your monthly bill is and the more you spend over the life of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Madison, TN?
With tools like our Interest Rate Estimator, you can get a feel for what your rate could be before you begin applying for auto loans in Madison, TN. If you've supplied 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 car loans in Madison have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers take longer terms because they usually mean a lower monthly payment. But longer terms are also likely to come with higher interest rates. If your budget allows for a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like based on different interest rates and terms to help you determine what you might be able to afford.
If you have less than ideal credit, raising your score could help lower 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'll be worth it once you see those lower Tennessee auto loan rates.
Taking the time to hunt down the right lender can also help you get a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Madison, TN — even if you don't have the best credit or income. You don't want to go with the first offer you receive because a better one could be right around the corner. Keep in mind some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Find the Best Auto Loan Rates in Madison, TN with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Madison, TN regardless of what type of vehicle you're buying or your credit score. We'll show you up to four loans at once so you can find the best deal. Fill out our secure online application, pick the loan that works best for you, and head down to a dealer in Madison to purchase a new ride. Don't wait to apply and check today's lowest interest rates!