How To Get a Lower Interest Rate on a Car Loan

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If you’re preparing to buy a new vehicle near Bonaire, you may be asking, “Can you lower the interest rate on a car loan?” It’s certainly possible. If you’re wondering how to get a lower interest rate on a car loan, you’ll need to consider your credit score, income-to-debt ratio, and other factors. This guide from the team at Warner Robins Chrysler Dodge Jeep Ram FIAT walks you through the different ways of getting a lower interest rate on auto loans.

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How Can I Lower My Car Loan Interest Rate in Warner Robins?

Here are some potential ways you can lower your interest rate on a car loan:

  1. Check your credit score. Knowing your credit score can help you decide if it needs to be cleaned up a bit more before you apply for a car loan.
  2. Clean up your score. Making sure your credit score is in a good place before applying for a car loan can help in getting you a lower interest rate.
  3. Check for Refinance Loans. Make sure you know the range of interest rates that are average for your credit score and loan amount. Be sure to compare rates and payment terms from multiple places and ask your current lender for a lower rate. If denied, let them know you’ve been offered lower rates elsewhere and ask if they’re willing to match or beat the lowest offer.
  4. Enlist a cosigner. Having someone cosign for your loan might get you a lower interest rate on your loan, especially if you have bad credit.
  5. Consider in-house financing. In-house financing means you’ll be making payments to the dealership instead of the bank. If you make your monthly payments on time, consistently, then you’ll also be able to get a higher credit score.

What Is a Good Interest Rate?

While getting a lower interest rate on a car loan is possible, the interest rate you receive depends on your credit score as well as the size of the loan. And while they can be negotiated, on average, drivers can find an interest rate ranging from 3.2% to 12.9%. Based on credit scores, here are estimated interest rates:

  • 800–740: 3.2% interest rate (on average)
  • 739–680: 4.5% interest rate (on average)
  • 680 and below: 6.5% – 12.9% (on average)

Get Zero-Interest Financing at Warner Robins Chrysler Dodge Jeep Ram FIAT

Now that you know how to get a lower interest rate on a car loan, please don’t hesitate to give us a call at 478-449-0551 when you’re ready to explore your options. Our finance department works closely with a variety of lenders and will help you secure a car loan with the lowest interest possible. We also offer zero-interest financing to qualified buyers in Macon and Perry. Get started today with our online application.