How Are Federal Way, WA Auto Loan Rates Determined?
Many factors affect your Washington 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 low credit score, high debt-to-income ratio, or purchasing an older vehicle from your Federal Way dealer could 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 payment is and the more you spend over the life of your loan. A difference of just one or two percent could mean you spend hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Federal Way, WA?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate might look like before you complete an application for a car loan in Federal Way, WA. If you've put in your information and aren't liking the percentage you see, what can you do to lower it?
The loan term is one element you can change on your own. Most car loans in Federal Way have terms ranging from 24 months (2 years) to 84 months (7 years) in 12-month intervals. Longer terms attract many borrowers 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 wise to choose a shorter term. The Auto Payment Calculator shows what your monthly payments might look like with different terms and interest rates to help you determine what might work for your budget.
If you have less than stellar credit, boosting your score could help lower your interest rate. Our Guide to Better Credit for Auto Financing will help you understand what goes into a credit score and the steps you can take now to raise it quickly. Your credit score may take some more time and work, but it's worth it to get those lower Washington car loan rates.
Taking the time to hunt down the right lender can also help you secure a lower rate. While lenders will look at the same information, you won't receive the same interest rate from each one. It's important to shop around and compare offers to find the best car loan rate in Federal Way, WA — even without a high income or credit score. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. Don't forget some lenders leave room for negotiation, so you can take an offer from one lender to the next to see if they'll beat the interest rate.
Discover the Best Auto Loan Rates in Federal Way, WA with myAutoloan
myAutoloan wants to help you find the lowest auto loan rates in Federal Way, WA regardless of your credit score and the type of car you're buying. You can see up to four loans at once so you can find the best deal. Complete our secure online application, select the best loan for you, and head to your Federal Way dealer to purchase a new ride. Apply now to check today's lowest interest rates!