What Determines Your Auto Loan Rate in Abilene, TX?
A handful of factors impact your Texas car loan 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Abilene dealer might lead to a higher interest rate. But why worry about a high interest rate? The higher of an interest rate you have, the more you pay each month and the more you spend over the term 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 Abilene, TX?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you start applying for auto loans in Abilene, TX. If you've supplied your information and aren't liking the percentage you see, what can be done to lower it?
The loan term is one aspect you can change on your own. Most Abilene car loans have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers are drawn in by longer terms because they usually mean a lower monthly payment. But longer terms tend to also 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 based on different interest rates and terms to help you figure out what might work for your budget.
If you have less than ideal credit, raising 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 how you can quickly bring it up. Your credit score will take some effort and time to build, but it's worth it for those lower Texas auto loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Abilene, TX — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because there might be a better one just around the corner. And, some lenders will negotiate, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Find the Best Auto Loan Rates in Abilene, TX with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Abilene, TX no matter your credit score or the type of car you're buying. We'll present you with up to four loans at once so you can find the best deal. Simply complete our secure online application, select the best loan for you, and head to your Abilene dealer to purchase a new ride. Apply today to see the current lowest interest rates!