What Determines Your Auto Loan Rate in Layton, UT?
A handful of factors influence your Utah auto loan rate, Including your credit score, your income, the amount of the loan, 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 Layton could mean a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the higher your monthly payment becomes and the more you spend over your loan’s term. A difference of just one or two percent could mean spending hundreds more overall.
Is There a Way to Lower My Layton Car Loan Rate?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you start applying for auto loans in Layton, UT. If you've supplied your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one element you can control. Most auto loans in Layton are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Many borrowers take longer terms 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 higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator estimates what your monthly payment could be based on different interest rates and terms to help you see what you might be able to afford.
If you have less than ideal credit, improving your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score 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 to get those lower Utah car loan rates.
Taking some time to find the right lender can also help you secure a lower rate. While lenders will consider the same information, you'll likely receive a different interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Layton, UT — 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 could be right around the corner. Don't forget some lenders will negotiate, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Find the Best Auto Loan Rates in Layton, UT with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Layton, UT regardless of your credit score and the type of car you're buying. We'll show you up to four loans at once so you can get the right deal. Complete our secure online application, select the best loan for you, and head down to a dealer in Layton to purchase a new ride. Apply today to see the current lowest interest rates!