How Are Car Loan Rates in Bountiful, UT Calculated?
Various factors contribute to your Utah auto loan interest rate, Including your credit score, your income, the amount of the loan, 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 Bountiful dealer could mean a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the higher your monthly bill is and the more you spend in total. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
Can I Lower My Car Loan Rate in Bountiful, UT?
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 Bountiful, UT. If you've put in your information and don't like the percentage you see, what can you do to lower it?
The loan term is one aspect you can control. Most Bountiful auto loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. 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 your budget allows for a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payment might be depending on different interest rates and terms to help you determine what might be affordable.
If you have less than stellar credit, increasing your score could lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and how you can quickly bring it up. It may take some time and work to better your credit score, but it's worth it for those lower Utah 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, each one might give you a different interest rate. It's important to shop around and compare offers to find the best car loan rate in Bountiful, UT — even without a high income or credit score. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. Plus, some lenders leave room 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.
See the Best Auto Loan Rates in Bountiful, UT with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Bountiful, UT regardless of what type of vehicle you're buying or your credit score. You can see up to four loans at once so you can get the right deal. Fill out our secure online application, choose the loan that looks best to you, and head to your Bountiful dealer to purchase a new ride. Apply now to see today's lowest interest rates!