How Are Racine, WI Auto Loan Rates Determined?
Many factors influence your Wisconsin car loan rate, including your credit score, the amount of the loan, 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 Racine 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 bill is and the more you spend over the life of your loan. A difference of one or two percent might not seem like much, but it could mean spending hundreds more on interest.
How Can I Get a Lower Car Loan Rate in Racine, WI?
Using tools like our Interest Rate Estimator can help you get an idea of what your rate might be before you complete an application for a car loan in Racine, WI. If you've filled out your information and are unhappy with the percentage you see, what can you do to lower it?
The loan term is one thing you can control. Most Racine car loans have terms in 12-month increments between 24 months (2 years) and 84 months (7 years). Many borrowers are drawn in by longer terms because they typically have 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 wise to choose a shorter term. The Auto Payment Calculator estimates what your monthly payment could be depending on different interest rates and terms to help you determine what you can afford.
If you have less than ideal credit, boosting your score could decrease 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 for those lower Wisconsin auto loan rates.
Waiting to find the right lender can also help you secure a lower rate. While lenders will use the same information, you'll likely receive a different interest rate from each one. Shopping around and comparing offers will help you find the best auto loan rate in Racine, WI — even without a high income or credit score. You don't want to go with the first offer you receive because there might be a better one just around the corner. And, some lenders are open to negotiation, so you can take your offer from one lender to another to see if they're willing to give an even lower rate.
Discover the Best Auto Loan Rates in Racine, WI with myAutoloan
myAutoloan is dedicated to helping you find the lowest car loan rates in Racine, WI 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 get the right deal. Complete our secure online application, select the best loan for you, and head down to a dealer in Racine to purchase a new ride. Apply now to see today's lowest interest rates!