How Are Car Loan Rates in Denton, TX Calculated?
Many factors contribute to your Texas car loan rate, including the loan amount, your credit score, your income, 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 Denton dealership could result in a higher interest rate. But why worry 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 you spend hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Denton, TX?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before having to apply for a car loan in Denton, TX. If you've filled out your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one aspect you can control. Most Denton car loans 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 have a lower monthly payment. But longer terms tend to also come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different interest rates and terms to help you figure out what you might be able to afford.
If you have less than ideal credit, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take to bring it up fast. Your credit score may take some more time and work, but it's all worth it for getting those lower auto loan rates in Texas.
Taking the time to hunt down the right lender can also help you achieve a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Denton, TX — even without a high income or credit score. You don't want to go with the first offer you receive because a better one might be waiting just around the corner. Plus, some lenders leave room for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Discover the Best Auto Loan Rates in Denton, TX with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Denton, TX no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can find the perfect loan. Fill out our secure online application, choose the best loan for you, and visit your Denton dealer to purchase a new car. Apply now to check today's lowest interest rates!