How Are Madison, WI Auto Loan Rates Determined?
Many factors contribute to your Wisconsin car loan interest rate, Including your credit score, your income, the amount of the loan, the down payment, the age of the car, and your loan's term (the length of the loan). A high debt-to-income ratio, low credit score, or purchasing an older car from a dealer in Madison 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 becomes and the more you spend over the term of your loan. Just one or two percent more could mean you spend hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Madison, WI?
Using tools like our Interest Rate Estimator can help you get a feel for what your rate could be before you start applying for auto loans in Madison, WI. If you've plugged in your information and are unhappy with the percentage you see, what steps can you take to lower it?
The loan term is one thing you have total control over. Most auto loans in Madison 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 typically have a lower monthly payment. However, longer terms also tend to come with higher interest rates. If you can handle 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 interest rates and terms to help you see what might be affordable.
If your credit is less than stellar, boosting your score could bring your interest rate down. Our Guide to Better Credit for Auto Financing walks you through what determines your credit score and which steps you can take to bring it up fast. Your credit score will take some effort and time to build, but it's worth it for those lower Wisconsin auto loan rates.
Taking the time to hunt down the right lender can also help you secure a lower rate. While lenders will consider the same information, you won't see the same interest rate from each one. You need to compare offers and shop around for the best auto loan rate in Madison, WI — even if you don't have the best credit or income. You shouldn't automatically choose the first offer you get because there might be a better one just around the corner. And, some lenders leave room for negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Find the Best Auto Loan Rates in Madison, WI with myAutoloan
myAutoloan is here to help you get the lowest auto loan rates in Madison, WI no matter what type of car you're buying or your credit score. We'll show you up to four loans at once so you can get the right deal. Fill out our simple and secure online application, choose the best loan for you, and head down to a dealer in Madison to purchase a new ride. Apply today to see the current lowest interest rates!