How Are Union City, TN Car Loan Rates Determined?
Many factors affect your Tennessee auto 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, low credit score, or purchasing an older car from a dealer in Union City could result in a higher interest rate. But why worry about a high interest rate? The higher your interest rate, the higher your monthly payment is and the more you spend over the life of your loan. Just one or two percent more could mean spending hundreds more overall.
How Do I Lower My Auto Loan Rate in Union City, TN?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you start applying for auto loans in Union City, TN. If you've put in your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one thing you have total control over. Most auto loans in Union City have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms will tempt many borrowers because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can handle a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be with different terms and interest rates to help you see what you can afford.
If your credit is far from great, improving 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 which steps you can take today to bring it up quickly. It may take some effort and time to increase your credit score, but it's worth it to get those lower Tennessee car loan rates.
Taking some time to find the right lender can also help you get 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 Union City, TN — even without 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. And, some lenders allow for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
See the Best Auto Loan Rates in Union City, TN with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Union City, TN regardless of what type of vehicle you're buying or your credit score. You can look at up to four loans at once so you can get the right deal. Fill out our simple and secure online application, pick the loan that works best for you, and head to your Union City dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!