What Determines Your Auto Loan Rate in Pharr, TX?
Several factors affect your Texas auto loan interest rate, including your credit score, the amount of the loan, your income, the age of the car, the down payment, 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 Pharr dealer could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly payment is and the more you spend in total. Just one or two percent more could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Pharr, TX?
You can use tools like our Interest Rate Estimator to get a feel for what your rate could be before you begin applying for auto loans in Pharr, TX. If you've filled out your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one element you have total control over. Most auto loans in Pharr have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms attract many borrowers because they typically have a lower monthly payment. However, a longer term also tends to come with a higher interest rate. If you can afford a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like based on different interest rates and terms to help you determine what might work for your budget.
If your credit is less than stellar, improving your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and the steps you can take now to raise it quickly. It may take some effort and time to increase your credit score, but it's worth it for those lower Texas auto loan rates.
Waiting to find the right lender can also help you achieve a lower rate. While lenders will look at the same information, you'll likely receive a different interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Pharr, TX — even if you don't have the highest income or best credit. You shouldn't automatically choose the first offer you get because there could be a better one right around the corner. And, some lenders will negotiate, 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 Pharr, TX with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Pharr, TX no matter what type of car you're buying or your credit score. You can see 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 to your Pharr dealer to purchase a new ride. Apply now to check today's lowest interest rates!