How Are San Marcos, TX Car Loan Rates Determined?
A handful of factors impact your Texas auto loan rate, including your income, your credits core, the loan amount, the car's age, the down payment, and the length of the loan (your loan's term). A low credit score, high debt-to-income ratio, or purchasing an older vehicle from your San Marcos dealer could lead to a higher interest rate. But why worry about a high interest rate? The higher your interest rate, the higher your monthly payment is and the more you spend in total. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in San Marcos, TX?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might be before you complete an application for a car loan in San Marcos, 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 thing you can change on your own. Most car loans in San Marcos have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers are drawn in by longer terms because the monthly payment is usually lower. But longer terms tend to also come with higher interest rates. 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 figure out what you might be able to afford.
If your credit is less than stellar, improving 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 all worth it for getting those lower auto loan rates in Texas.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in San Marcos, 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 could be a better one right around the corner. And, some lenders will negotiate, so you can take an offer from one lender to another to see if they're willing to beat the interest rate.
See the Best Auto Loan Rates in San Marcos, TX with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in San Marcos, TX regardless of what type of vehicle you're buying or your credit score. We'll present you with up to four loans at once so you can find the right deal. Fill out our secure online application, pick the loan that works best for you, and head down to a dealer in San Marcos to purchase a new ride. Don't wait to apply and check today's lowest interest rates!