How Are Burlington, VT Auto Loan Rates Determined?
Several factors affect your Vermont car loan interest rate, including your credit score, the amount of the loan, your income, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Burlington dealership could result in a higher interest rate. But why is a high interest rate bad? The higher your interest rate, the more you pay each month and the more you spend in total. Even a rate one or two percent higher could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Burlington, VT?
You can use tools like our Interest Rate Estimator to get an idea of what your rate might look like before you start applying for auto loans in Burlington, VT. If you've plugged in your information and aren't happy with the percentage you see, what can be done to lower it?
The loan term is one thing you have total control over. Most Burlington car loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms attract many borrowers because they usually mean a lower monthly payment. But longer terms are also likely to come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with 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 help lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and the steps you can take now to raise it quickly. 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 Vermont.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will consider the same information, each one might give you a different interest rate. Shopping around and comparing offers will help you find the best auto loan rate in Burlington, VT — even if you don't have the highest income or best credit. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Don't forget some lenders will negotiate, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Discover the Best Auto Loan Rates in Burlington, VT with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Burlington, VT 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 perfect loan. Fill out our secure online application, choose the loan that looks best to you, and head to your Burlington dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!