How Are South Burlington, VT Car Loan Rates Determined?
A handful of factors impact your Vermont car 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, poor credit score, or choosing an older vehicle at your South Burlington dealership might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate, the higher your monthly payment 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.
How Can I Get a Lower Car Loan Rate in South Burlington, VT?
Online tools like our Interest Rate Estimator will give you a feel for what your rate might look like before you begin applying for auto loans in South Burlington, VT. If you've supplied 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 car loans in South Burlington have terms in 12-month intervals ranging from 24 months (2 years) to 84 months (7 years). Many borrowers are drawn in by longer terms because they typically have a lower monthly payment. However, longer terms also tend to 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 payment might be depending on different interest rates and terms to help you figure out what might be affordable.
If you have less than stellar credit, improving your score could 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'll be worth it once you see those lower Vermont auto loan rates.
Waiting to find the right lender can also help you achieve a lower rate. While lenders take the same information into consideration, 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 South Burlington, VT — even if you don't have the best credit or income. You don't want to choose the first offer you get 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 other to see if they can beat the interest rate.
Use myAutoloan to Check the Best Auto Loan Rates in South Burlington, VT
myAutoloan wants to help you find the lowest auto loan rates in South Burlington, VT 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 get the right deal. Complete our secure online application, pick the loan that works best for you, and visit your South Burlington dealer to purchase a new car. Apply now to check today's lowest interest rates!