What Determines Your Auto Loan Rate in Springfield, TN?
A handful of factors contribute to your Tennessee auto loan interest rate, Including your credit score, your income, the amount of the loan, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Springfield could result in a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over the life of your loan. A difference of just one or two percent could mean spending hundreds more on interest.
Is There a Way to Lower My Springfield Car Loan Rate?
Online tools like our Interest Rate Estimator will give you a feel for what your rate could be before you complete an application for a car loan in Springfield, TN. If you've filled out 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 Springfield car loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because they usually have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can handle 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 figure out what might be affordable.
If your credit is less than stellar, improving 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. It may take some time and work to better your credit score, but it's all worth it for getting those lower auto loan rates in Tennessee.
Putting effort into finding the right lender can also help you achieve a lower rate. While lenders will consider 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 Springfield, 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 there could be a better one right around the corner. Plus, some lenders leave room for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Discover the Best Auto Loan Rates in Springfield, TN with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Springfield, TN no matter your credit score or the type of car you're buying. You can see up to four loans at once so you can find the perfect loan. Fill out our secure online application, select the best loan for you, and head down to a dealer in Springfield to purchase a new ride. Apply today to see the current lowest interest rates!