How Are Frisco, TX Auto Loan Rates Determined?
Several factors influence your Texas car loan interest rate, including your credit score, the amount of the loan, 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, low credit score, or purchasing an older car from a dealer in Frisco could lead to a higher interest rate. But why worry about a high interest rate? The higher of an interest rate you have, the higher your monthly payment is and the more you spend over your loan’s term. A difference of just one or two percent could mean you spend hundreds more on interest.
Is There a Way to Lower My Frisco Car Loan Rate?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you complete an application for a car loan in Frisco, TX. If you've supplied your information and are unhappy with the percentage you see, how can you lower?
The loan term is one thing you can change on your own. Most auto loans in Frisco have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms will tempt many borrowers because the monthly payment is usually lower. 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 estimates what your monthly payment could be with different interest rates and terms to help you decide what you can afford.
If you have less than stellar credit, increasing 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 which steps you can take today to bring it up quickly. 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 secure a lower rate. While lenders take the same information into consideration, 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 Frisco, TX — even if you don't have the highest income or best credit. You don't want to choose the first offer you get because there might be a better one just around the corner. Plus, some lenders are open to negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Find the Best Auto Loan Rates in Frisco, TX with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Frisco, TX 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 find the perfect loan. Fill out our secure online application, choose the best loan for you, and head down to a dealer in Frisco to purchase a new ride. Don't wait to apply and check today's lowest interest rates!