How Are Car Loan Rates in South Salt Lake, UT Calculated?
Several factors affect your Utah car loan interest rate, including your income, your credits core, the loan amount, the down payment, the age of the car, 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 South Salt Lake dealer could lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate gets, the more you pay each month and the more you spend over your loan’s term. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
Is There a Way to Lower My South Salt Lake Car Loan Rate?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before having to apply for a car loan in South Salt Lake, UT. If you've supplied your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one factor you can control. Most car loans in South Salt Lake have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford a higher monthly payment, choosing a shorter term is a good move. The Auto Payment Calculator shows what your monthly payments might look like depending on different interest rates and terms to help you figure out what might work for your budget.
If your credit is far from great, improving your score could lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's worth it for those lower Utah auto loan rates.
Waiting to find the right lender can also help you get a lower rate. While lenders take the same information into consideration, you won't receive the same interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in South Salt Lake, 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 there might be a better one just around the corner. Plus, some lenders will negotiate, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in South Salt Lake, UT
myAutoloan is committed to helping you find the lowest auto loan rates in South Salt Lake, UT regardless of your credit score and the type of car you're buying. We'll present you with 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 down to a dealer in South Salt Lake to purchase a new ride. Apply now to see today's lowest interest rates!