How Are Plano, TX Auto Loan Rates Determined?
Many factors influence your Texas car loan rate, including your income, your credits core, the loan amount, the down payment, your loan's term (the length of the loan), and the car's age. A poor credit score, low income, or buying an older vehicle from a dealer in Plano might lead to 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. Even a rate one or two percent higher could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Plano, TX?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might be before you begin applying for auto loans in Plano, TX. If you've put in your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one factor you can change on your own. Most auto loans in Plano have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Longer terms will tempt many borrowers because they typically have a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different interest rates and terms to help you see what you might be able to afford.
If your credit is less than stellar, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and which steps you can take to bring it up fast. It may take some time and work to better your credit score, but it's worth it for those lower Texas auto loan rates.
Taking the time to hunt down the right lender can also help you achieve a lower rate. While lenders take the same information into consideration, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Plano, 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 a better one might be waiting just around the corner. Keep in mind some lenders allow for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Discover the Best Auto Loan Rates in Plano, TX with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Plano, 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 right deal. Simply complete our secure online application, select the best loan for you, and visit your Plano dealer to purchase a new car. Don't wait to apply and check today's lowest interest rates!