How Are Memphis, TN Auto Loan Rates Determined?
Several factors affect your Tennessee auto loan rate, including your income, your credits core, the loan amount, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Memphis dealership could mean a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the higher your monthly bill is and the more you spend over your loan’s term. Even a rate one or two percent higher could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Memphis, TN?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before you complete an application for a car loan in Memphis, TN. If you've put in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one thing you have total control over. Most auto loans in Memphis 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 have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford a bigger monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you see what you can afford.
If you have less than ideal credit, increasing your score could decrease your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's worth it for those lower Tennessee auto loan rates.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will use the same information, you'll likely receive a different interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Memphis, TN — even if you don't have 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 allow for negotiation, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
Discover the Best Auto Loan Rates in Memphis, TN with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Memphis, TN regardless of what type of vehicle you're buying or your credit score. You can see up to four loans at once so you can find the right deal. Complete our secure online application, choose the loan that looks best to you, and purchase a new ride from your {City}} dealer. Apply now to check today's lowest interest rates!