What Determines Your Auto Loan Rate in El Paso, TX?
Many factors affect your Texas car loan interest 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, poor credit score, or choosing an older vehicle at your El Paso dealership could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the higher your monthly payment is and the more you spend in total. Just one or two percent more could mean you spend hundreds more on interest.
How Do I Lower My Auto Loan Rate in El Paso, TX?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before having to apply for a car loan in El Paso, TX. If you've supplied your information and are unhappy with the percentage you see, what can be done to lower it?
The loan term is one aspect you have a lot of control over. Most El Paso auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because they usually have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a bigger monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you decide what might be affordable.
If your credit is less than stellar, raising your score could lower 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. Your credit score may take some more time and work, but it's worth it to get those lower Texas car loan rates.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders take the same information into consideration, each one might give you a different interest rate. You need to shop around and compare offers to find the best auto loan rate in El Paso, TX — even if you don't have the highest income or best credit. You don't want to go with the first offer you receive because there might be a better one just around the corner. And, 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.
Use myAutoloan to Check the Best Auto Loan Rates in El Paso, TX
myAutoloan is dedicated to helping you find the lowest car loan rates in El Paso, TX regardless of what type of vehicle you're buying or your credit score. We'll show you up to four loans at once so you can get the right deal. Simply complete our secure online application, choose the loan that looks best to you, and purchase a new ride from your {City}} dealer. Don't wait to apply and check today's lowest interest rates!