What Determines Your Auto Loan Rate in Norfolk, VA?
Various factors contribute to your Virginia auto loan interest rate, including your credit score, the amount of the loan, your income, the down payment, your loan's term (the length of the loan), and the car's age. A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Norfolk might lead to a higher interest rate. But is a high interest rate so bad? The higher your interest rate is, the higher your monthly payment is and the more you spend over your loan’s term. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Norfolk, VA?
With tools like our Interest Rate Estimator, you can get an idea of what your rate might look like before having to apply for a car loan in Norfolk, VA. If you've plugged in your information and are unhappy with the percentage you see, how can you lower?
The loan term is one thing you have total control over. Most Norfolk car loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Many borrowers take longer terms because they usually mean a lower monthly payment. But longer terms tend to also come with higher interest rates. If you can afford 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 might work for your budget.
If you have less than stellar credit, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and how you can quickly bring it up. It may take some time and work to better your credit score, but it's worth it to get those lower Virginia car loan rates.
Putting effort into finding the right lender can also help you get a lower rate. While lenders will use the same information, each one might give you a different interest rate. You need to compare offers and shop around for the best auto loan rate in Norfolk, VA — even if you don't have the best credit or income. You don't want to go with the first offer you receive because there could be a better one right around the corner. And, some lenders allow for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
See the Best Auto Loan Rates in Norfolk, VA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Norfolk, VA no matter what type of car you're buying or your credit score. You can look at up to four loans at once so you can find the best deal. Fill out our simple and secure online application, choose the best loan for you, and head down to a dealer in Norfolk to purchase a new ride. Apply now to check today's lowest interest rates!