How Are Henrico, VA Auto Loan Rates Determined?
Many factors influence your Virginia auto loan interest rate, including your credit score, the amount of the loan, your income, the age of the car, the down payment, 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 Henrico dealer might lead to 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 life of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Henrico, VA?
Online tools like our Interest Rate Estimator will give you an idea of what your rate might be before you start applying for auto loans in Henrico, VA. If you've supplied your information and don't like the percentage you see, how can you lower?
The loan term is one aspect you can control. Most Henrico auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because the monthly payment is usually lower. However, a longer term also tends to come with a higher interest rate. If your budget allows for a higher monthly payment, it's smart 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 see what you might be able to afford.
If you have less than stellar credit, boosting your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take to bring it up fast. Your credit score will take some effort and time to build, but it's worth it for those lower Virginia auto loan rates.
Taking some time to find the right lender can also help you snag a lower rate. While lenders will consider the same information, you won't see the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Henrico, VA — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. Don't forget some lenders allow for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
See the Best Auto Loan Rates in Henrico, VA with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Henrico, VA no matter what type of car you're buying or your credit score. You can see up to four loans at once so you can find the perfect loan. Complete our secure online application, choose the loan that looks best to you, and visit your Henrico dealer to purchase a new car. Apply now to check today's lowest interest rates!