How Are Charlottesville, VA Auto Loan Rates Determined?
Several factors affect your Virginia auto loan rate, including the loan amount, your credit score, 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, low credit score, or purchasing an older car from a dealer in Charlottesville could result in a higher interest rate. But why worry about a high interest rate? The higher your interest rate is, the higher your monthly payment is and the more you spend over the term of your loan. Just one or two percent more could mean spending hundreds more overall.
Can I Lower My Car Loan Rate in Charlottesville, VA?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before you begin applying for auto loans in Charlottesville, VA. If you've plugged in your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one factor you have a lot of control over. Most Charlottesville auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). 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 handle a higher monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different interest rates and terms to help you figure out what might be affordable.
If your credit is less than stellar, improving your score could lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take to bring it up fast. 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 Virginia.
Waiting to find the right lender can also help you secure a lower rate. While lenders will look at 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 Charlottesville, VA — even without a high income or credit score. You shouldn't go with the first offer you receive because there might be a better one just around the corner. Keep in mind 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 Charlottesville, VA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Charlottesville, VA regardless of what type of vehicle you're buying or your credit score. You can look at up to four loans at once so you can find the perfect loan. Complete our secure online application, select the best loan for you, and head to your Charlottesville dealer to purchase a new ride. Apply now to check today's lowest interest rates!