What Determines Your Auto Loan Rate in Washington, DC?
A handful of factors contribute to your Washington DC auto loan 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 Washington might lead to a higher interest rate. But why worry about a high interest rate? The higher of an interest rate you have, the higher your monthly payment becomes 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 overall.
How Do I Lower My Auto Loan Rate in Washington, DC?
With tools like our Interest Rate Estimator, you can get a feel for what your rate might look like before you complete an application for a car loan in Washington, DC. If you've filled out your information and aren't happy with the percentage you see, what steps can you take to lower it?
The loan term is one aspect you can change on your own. Most Washington auto loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Longer terms will tempt many borrowers because they usually have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can afford a bigger monthly payment, it's wise to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment depending on different interest rates and terms to help you determine what might be affordable.
If your credit is far from great, boosting your score could lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and how you can quickly bring it up. Your credit score will take some effort and time to build, but it's worth it for those lower Washington DC auto loan rates.
Taking the time to hunt down the right lender can also help you snag a lower rate. While lenders will consider the same information, you'll likely receive a different interest rate from each one. You need to shop around and compare offers to find the best auto loan rate in Washington, DC — even without a high income or credit score. You shouldn't go with the first offer you receive because there could be a better one right around the corner. Plus, some lenders will negotiate, 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 Washington, DC with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Washington, DC no matter your credit score or the type of car you're buying. You can look at up to four loans at once so you can find the right deal. Fill out our simple and secure online application, choose the loan that looks best to you, and head to your Washington dealer to purchase a new ride. Don't wait to apply and check today's lowest interest rates!