In the market for a new car? If so, you're probably wondering how to get the best possible auto loan rate. After all, the interest rate you pay on your loan can have a big impact on your monthly payments and the total amount you'll pay for your car over time.
If you're looking for the best 84-month auto loan rates, there are a few things you need to know. First, the interest rate you'll qualify for will depend on a number of factors, including your credit score, the amount you're borrowing, and the length of your loan term. Generally speaking, the higher your credit score, the lower your interest rate will be. The shorter your loan term, the lower your interest rate will also be. However, keep in mind that a shorter loan term will also result in higher monthly payments.
In the next section, we'll take a closer look at the different factors that affect auto loan rates and provide some tips on how to get the best rate possible.
Best 84 Month Auto Loan Rates
Here are 8 important points to keep in mind when shopping for the best 84-month auto loan rates:
- Check your credit score.
- Shop around for the best rate.
- Consider a shorter loan term.
- Make a larger down payment.
- Get pre-approved for a loan.
- Be prepared to negotiate.
- Read the fine print.
- Consider using an online lender.
By following these tips, you can increase your chances of getting the best possible rate on your 84-month auto loan.
Check your credit score.
Your credit score is one of the most important factors that will affect the interest rate you qualify for on an auto loan. Lenders use your credit score to assess your risk as a borrower. A higher credit score indicates that you are a lower risk, which means that you are more likely to repay your loan on time. As a result, you will be offered a lower interest rate.
- Get a free copy of your credit report.
You can get a free copy of your credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) once per year at annualcreditreport.com. It's a good idea to check your credit report regularly to make sure that there are no errors and to see where your score stands.
- Pay your bills on time.
One of the best ways to improve your credit score is to pay all of your bills on time, every month. This includes your credit card bills, utility bills, and rent or mortgage payments.
- Keep your credit utilization low.
Your credit utilization ratio is the amount of credit you are using compared to the amount of credit you have available. A high credit utilization ratio can negatively impact your credit score. Try to keep your credit utilization below 30%.
- Don't open too many new credit accounts in a short period of time.
Opening too many new credit accounts in a short period of time can also hurt your credit score. Try to space out your applications for new credit by at least six months.
By following these tips, you can improve your credit score and get a better interest rate on your 84-month auto loan.
Shop around for the best rate.
Once you know your credit score, you can start shopping around for the best auto loan rate. There are a number of different lenders that offer 84-month auto loans, so it's important to compare rates from multiple lenders before you make a decision.
You can get auto loan quotes online, over the phone, or in person at a bank or credit union. When you're comparing rates, be sure to compare the following:
- The interest rate. This is the most important factor to consider when choosing an auto loan. The lower the interest rate, the less you will pay for your car over time.
- The loan term. The loan term is the length of time you have to repay your loan. A shorter loan term will result in higher monthly payments, but you will pay less interest overall. A longer loan term will result in lower monthly payments, but you will pay more interest overall.
- The fees. Some lenders charge fees for processing your loan application, origination fees, and prepayment penalties. Be sure to ask about all of the fees associated with an auto loan before you sign on the dotted line.
Once you have compared rates from multiple lenders, you can choose the loan that is right for you.
Here are some tips for shopping around for the best auto loan rate:
- Get pre-approved for a loan. Getting pre-approved for a loan can give you a better idea of the interest rate you qualify for and how much you can afford to borrow. It can also make the car buying process go more smoothly.
- Don't be afraid to negotiate. Lenders are often willing to negotiate on the interest rate, especially if you have a good credit score. Don't be afraid to ask for a lower rate.
- Consider using an online lender. Online lenders often offer lower interest rates than traditional banks and credit unions. However, it's important to do your research before choosing an online lender.
By following these tips, you can increase your chances of getting the best possible rate on your 84-month auto loan.
Consider a shorter loan term.
The length of your loan term is another important factor that will affect the interest rate you qualify for. A shorter loan term will result in a higher monthly payment, but you will pay less interest overall. A longer loan term will result in a lower monthly payment, but you will pay more interest overall.
- Pros of a shorter loan term:
- Lower total interest paid. Since you're paying off the loan faster, you'll pay less interest overall.
- Build equity in your car more quickly. With a shorter loan term, you'll own your car outright sooner.
- Be able to trade in your car more easily. If you have a shorter loan term, you'll be more likely to have a car that is worth more than the amount you owe on your loan, which will make it easier to trade in your car for a new one.
Cons of a shorter loan term:
- Higher monthly payments. Since you're paying off the loan in a shorter amount of time, your monthly payments will be higher.
- Less flexibility. If you have a financial hardship, it may be more difficult to make your loan payments if you have a shorter loan term.
Ultimately, the decision of whether to choose a shorter or longer loan term depends on your individual circumstances. If you can afford the higher monthly payments, a shorter loan term is a good option because you will pay less interest overall. However, if you are on a tight budget, a longer loan term may be a better choice.
Make a larger down payment.
The amount of your down payment is another important factor that will affect the interest rate you qualify for. A larger down payment will result in a lower loan amount, which means that you will be less risky to the lender. As a result, you will be offered a lower interest rate.
- Pros of a larger down payment:
- Lower interest rate. Since you're borrowing less money, you'll be less risky to the lender, which means that you'll qualify for a lower interest rate.
- Lower monthly payments. With a lower interest rate, your monthly payments will be lower.
- More equity in your car. With a larger down payment, you'll have more equity in your car from the start.
Cons of a larger down payment:
- Higher upfront cost. A larger down payment will require you to pay more money upfront.
- Less money available for other things. If you use your savings to make a larger down payment, you may have less money available for other things, such as a new house or retirement savings.
Ultimately, the decision of how much to put down on a car is a personal one. There is no right or wrong answer. The best amount for you will depend on your individual circumstances and financial goals.
Get pre-approved for a loan.
Getting pre-approved for an auto loan is a great way to get a better idea of the interest rate you qualify for and how much you can afford to borrow. It can also make the car buying process go more smoothly.
- Pros of getting pre-approved for a loan:
- Know your interest rate and loan amount upfront. Getting pre-approved for a loan will give you a good idea of the interest rate you qualify for and how much you can afford to borrow. This information can help you make more informed decisions about your car purchase.
- Make the car buying process go more smoothly. When you're pre-approved for a loan, you can go to the dealership with a check in hand. This can make the car buying process go more quickly and easily.
- Get a better deal on your car. Dealers are often more willing to negotiate with buyers who are pre-approved for a loan. This is because they know that you're a serious buyer who is ready to purchase a car.
Cons of getting pre-approved for a loan:
- It can be time-consuming. Getting pre-approved for a loan can take some time, especially if you apply with multiple lenders. However, it's worth it to take the time to get pre-approved so that you can get the best possible deal on your car.
- Your credit score may be affected. When you apply for a loan, the lender will pull your credit report. This can cause your credit score to drop by a few points. However, the impact is usually temporary and your credit score should recover within a few months.
Overall, getting pre-approved for an auto loan is a good idea if you're in the market for a new car. It can help you get a better interest rate, make the car buying process go more smoothly, and get a better deal on your car.
Be prepared to negotiate.
The interest rate that you're offered on an auto loan is not set in stone. You can often negotiate a lower interest rate, especially if you have a good credit score. Here are a few tips for negotiating a lower interest rate on your auto loan:
- Do your research. Before you start negotiating, do your research to find out what the average interest rate is for auto loans. This will give you a good starting point for your negotiations.
- Get pre-approved for a loan from multiple lenders. When you have multiple loan offers, you're in a better position to negotiate a lower interest rate. Lenders are more likely to compete for your business if they know that you have other options.
- Be prepared to walk away. If the lender is not willing to negotiate on the interest rate, be prepared to walk away. There are plenty of other lenders out there who will be willing to give you a better deal.
Here are some additional tips for negotiating a lower interest rate on your auto loan:
- Be confident. Don't be afraid to negotiate with the lender. Remember, you're the one who is borrowing the money. You're in control of the situation.
- Be polite. Even if you're feeling frustrated, be polite to the lender. Being rude or aggressive will only make the situation worse.
- Be persistent. Don't give up if the lender doesn't immediately agree to your terms. Be persistent and keep negotiating until you get the interest rate that you want.
By following these tips, you can increase your chances of getting a lower interest rate on your 84-month auto loan.
It's important to remember that negotiating a lower interest rate on an auto loan takes time and effort. However, it's worth it to take the time to negotiate because you could save a lot of money over the life of your loan.
Read the fine print.
Before you sign on the dotted line for an auto loan, be sure to read the fine print carefully. There may be hidden fees or other terms that you're not aware of. Here are a few things to look for when you're reading the fine print on an auto loan:
- The interest rate. This is the most important factor to consider when choosing an auto loan. Make sure that you understand the interest rate and how it will be calculated.
- The loan term. The loan term is the length of time you have to repay your loan. A shorter loan term will result in higher monthly payments, but you will pay less interest overall. A longer loan term will result in lower monthly payments, but you will pay more interest overall.
- The fees. Lenders may charge a variety of fees, including origination fees, processing fees, and prepayment penalties. Be sure to ask about all of the fees associated with an auto loan before you sign the contract.
- The prepayment penalty. Some lenders charge a fee if you pay off your loan early. This fee can be a significant amount of money, so be sure to ask about it before you sign the contract.
If you're not sure about something in the fine print, be sure to ask the lender for clarification. It's important to understand all of the terms of your loan before you sign the contract.
Consider using an online lender.
Online lenders are becoming increasingly popular for auto loans. Online lenders typically offer lower interest rates than traditional banks and credit unions. This is because they have lower overhead costs and can pass those savings on to their customers.
Here are some of the advantages of using an online lender for an auto loan:
- Lower interest rates. Online lenders typically offer lower interest rates than traditional banks and credit unions.
- Faster and easier application process. The application process for an online auto loan is typically faster and easier than the application process at a traditional bank or credit union. You can often apply for an online auto loan in just a few minutes.
- More convenient. You can apply for an online auto loan from the comfort of your own home. You don't have to go to a bank or credit union in person.
Here are some of the disadvantages of using an online lender for an auto loan:
- Less personal service. Online lenders typically offer less personal service than traditional banks and credit unions. This is because they don't have physical branches where you can go to talk to a loan officer in person.
- Fewer loan options. Online lenders typically offer fewer loan options than traditional banks and credit unions. This is because they are not as well-established and do not have the same resources.
- More risk. There is more risk involved in borrowing money from an online lender than from a traditional bank or credit union. This is because online lenders are not as regulated as traditional banks and credit unions.
Overall, online lenders can be a good option for borrowers who are looking for a low interest rate and a convenient application process. However, it's important to weigh the pros and cons carefully before deciding whether to use an online lender.
If you're considering using an online lender for an auto loan, be sure to do your research and choose a lender that is reputable and trustworthy. You can read reviews of online lenders online or ask your friends and family for recommendations.
FAQ
Here are some frequently asked questions about 84-month auto loans:
Question 1: What is an 84-month auto loan?
Answer: An 84-month auto loan is a type of car loan that has a repayment period of 84 months, or 7 years.
Question 2: What are the advantages of an 84-month auto loan?
Answer: The main advantage of an 84-month auto loan is that it can result in lower monthly payments compared to a shorter-term loan. This can make it easier to afford a new car.
Question 3: What are the disadvantages of an 84-month auto loan?
Answer: The main disadvantage of an 84-month auto loan is that you will pay more interest over the life of the loan compared to a shorter-term loan. Additionally, you may be upside down on your loan for a longer period of time, meaning that you owe more on the car than it is worth.
Question 4: What is the best way to get the best interest rate on an 84-month auto loan?
Answer: The best way to get the best interest rate on an 84-month auto loan is to shop around and compare rates from multiple lenders. You can also improve your credit score and make a larger down payment to qualify for a lower interest rate.
Question 5: Should I get an 84-month auto loan?
Answer: Whether or not you should get an 84-month auto loan depends on your individual circumstances. If you can afford the higher monthly payments, a shorter-term loan is a better option because you will pay less interest overall. However, if you are on a tight budget, an 84-month auto loan may be a better choice.
Question 6: What are some tips for getting the best deal on an 84-month auto loan?
Answer: Here are some tips for getting the best deal on an 84-month auto loan:
- Shop around and compare rates from multiple lenders.
- Get pre-approved for a loan before you go to the dealership.
- Negotiate the interest rate and terms of the loan with the lender.
- Make a larger down payment.
- Consider getting a shorter loan term if you can afford the higher monthly payments.
Closing Paragraph:
By following these tips, you can increase your chances of getting the best possible deal on an 84-month auto loan.
In addition to the information provided in the FAQ section, here are some additional tips for getting the best 84-month auto loan rates:
Tips
Here are some additional tips for getting the best 84-month auto loan rates:
Tip 1: Improve your credit score.
Your credit score is one of the most important factors that will affect the interest rate you qualify for on an auto loan. Lenders use your credit score to assess your risk as a borrower. A higher credit score indicates that you are a lower risk, which means that you are more likely to repay your loan on time. As a result, you will be offered a lower interest rate.
Tip 2: Make a larger down payment.
The amount of your down payment is another important factor that will affect the interest rate you qualify for. A larger down payment will result in a lower loan amount, which means that you will be less risky to the lender. As a result, you will be offered a lower interest rate.
Tip 3: Get pre-approved for a loan.
Getting pre-approved for an auto loan can give you a better idea of the interest rate you qualify for and how much you can afford to borrow. It can also make the car buying process go more smoothly.
Tip 4: Shop around and compare rates.
Don't just accept the first interest rate that you're offered. Shop around and compare rates from multiple lenders. You can get auto loan quotes online, over the phone, or in person at a bank or credit union. Be sure to compare the interest rate, loan term, and fees before you make a decision.
Closing Paragraph:
By following these tips, you can increase your chances of getting the best possible rate on your 84-month auto loan.
Now that you know how to get the best 84-month auto loan rates, you can start shopping for your new car with confidence.
Conclusion
Summary of Main Points:
- An 84-month auto loan can be a good option for borrowers who are looking for a lower monthly payment, but it's important to weigh the pros and cons carefully.
- The interest rate you qualify for will depend on your credit score, the amount of your down payment, and the length of your loan term.
- You can improve your chances of getting a lower interest rate by shopping around and comparing rates from multiple lenders.
- You can also improve your chances of getting a lower interest rate by making a larger down payment, getting pre-approved for a loan, and improving your credit score.
Closing Message:
By following the tips in this article, you can increase your chances of getting the best possible rate on your 84-month auto loan. With a little research and effort, you can save a lot of money over the life of your loan.
Getting a new car should be an exciting experience. By following the tips in this article, you can make sure that you get the best possible deal on your auto loan and drive away in your new car with confidence.