How Are Arlington, VA Car Loan Rates Determined?
Many factors impact your Virginia car loan interest rate, including your income, your credits core, the loan amount, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, poor credit score, or choosing an older vehicle at your Arlington dealership might lead to a higher interest rate. But why is a high interest rate bad? The higher your interest rate gets, the more you pay each month and the more you spend over your loan’s term. Just one or two percent more could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Arlington, VA?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you complete an application for a car loan in Arlington, VA. If you've plugged in your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one factor you can change on your own. Most car loans in Arlington have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because the monthly payment is usually lower. However, longer terms also tend to come with higher interest rates. If you can handle a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be with different terms and interest rates to help you see what you can afford.
If your credit is far from great, improving your score could help lower your interest rate. Use our Guide to Better Credit for Auto Financing to better understand what determines your credit score and which steps you can take to bring it up fast. It may take some effort and time to increase your credit score, but it's worth it for those lower Virginia auto loan rates.
Taking the time to hunt down the right lender can also help you secure a lower rate. While lenders will use the same information, you won't receive the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Arlington, VA — 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 are open to negotiation, 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 Arlington, VA with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Arlington, VA regardless of your credit score and the type of car you're buying. You can look at up to four loans at once so you can find the perfect loan. Fill out our simple and secure online application, pick the loan that works best for you, and head down to a dealer in Arlington to purchase a new ride. Apply now to see today's lowest interest rates!