What Determines Your Auto Loan Rate in Tacoma, WA?
A handful of factors influence your Washington auto loan interest rate, including the loan amount, your credit score, 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 Tacoma could mean a higher interest rate. But why is a high interest rate bad? The higher of an interest rate you have, the higher your monthly payment becomes and the more you spend over the life of your loan. A difference of just one or two percent could mean spending hundreds more on interest.
How Do I Lower My Auto Loan Rate in Tacoma, WA?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you begin applying for auto loans in Tacoma, WA. If you've filled out your information and aren't liking the percentage you see, what steps can you take to lower it?
The loan term is one factor you have total control over. Most Tacoma auto loans are available with terms in 12-month increments between 2 years (24 months) and 7 years (84 months). Longer terms will tempt many borrowers 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 better to choose a shorter term. The Auto Payment Calculator shows your possible monthly payment with different terms and interest rates to help you determine what you might be able to afford.
If you have less than ideal credit, boosting your score could decrease your interest rate. Our Guide to Better Credit for Auto Financing can help you understand where your credit score comes from and which steps you can take to bring it up fast. It may take some effort and time to increase your credit score, but it's worth it for those lower Washington auto loan rates.
Taking some time to find the right lender can also help you achieve a lower rate. While lenders will consider 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 Tacoma, WA — even without a high income or credit score. You shouldn't automatically choose the first offer you get because a better one might be waiting just around the corner. Plus, some lenders leave room for negotiation, so you can take an offer from one lender to the other to see if they can beat the interest rate.
Discover the Best Auto Loan Rates in Tacoma, WA with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Tacoma, WA regardless of what type of vehicle you're buying or your credit score. We'll show you up to four loans at once so you can find the perfect loan. Complete our secure online application, choose the best loan for you, and head down to a dealer in Tacoma to purchase a new ride. Apply today to see the current lowest interest rates!