What Determines Your Auto Loan Rate in Salem, VA?
Many factors influence your Virginia car loan rate, including the loan amount, your credit score, your income, the car's age, the down payment, and the length of the loan (your loan's term). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Salem might lead to a higher interest rate. But what's so bad about a high interest rate? The higher your interest rate is, the higher your monthly bill is and the more you spend over the term of your loan. Even a rate one or two percent higher could mean you spend hundreds more on interest.
How Do I Get a Lower Car Loan Interest in Salem, VA?
You can use tools like our Interest Rate Estimator to get a feel for what your rate might look like before having to apply for a car loan in Salem, VA. If you've filled out your information and are unhappy with the percentage you see, how can you lower?
The loan term is one thing you can change on your own. Most Salem car loans have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers because they usually mean a lower monthly payment. But longer terms are also likely to come with higher interest rates. If your budget allows for a higher monthly payment, it's better to choose a shorter term. The Auto Payment Calculator shows what your monthly payment might be with different terms and interest rates to help you see what you might be able to afford.
If your credit is far from great, improving your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and the steps you can take now to raise it quickly. It may take some effort and time to increase 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 snag a lower rate. While lenders will look at the same information, you won't see the same interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Salem, VA — even without a high income or credit score. You don't want to choose the first offer you get because a better one could be right around the corner. Don't forget some lenders are open to 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 Salem, VA with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Salem, VA no matter your credit score or the type of car you're buying. We'll present you with up to four loans at once so you can find the best deal. Fill out our secure online application, pick the loan that works best for you, and head to your Salem dealer to purchase a new ride. Apply now to see today's lowest interest rates!