How to Get a Lower Interest Rate on a Car Loan
Can you lower the interest rate on a car loan? It’s a question lots of Herculaneum drivers have, and the experts at Green Light Auto Credit can help! Auto financing can be complicated, so we want to do all we can to keep you informed before you make a purchase. Before you drive home to St. Louis in a new car, let our finance team walk you through how you can lower the interest rate on your car loan.
Getting a Lower Interest Rate on Auto Loans
Still wondering whether you can lower the interest rate on a car loan? We’re here to help. Here are the steps you’ll want to follow when asking “how can I lower my car loan interest rate?”
- Check Your Credit Score: It’s helpful to know your credit score before you start the car-buying process. If your score is lower, it might be a good idea to improve it a bit before applying for a loan.
- Improve Your Credit Score: If you want to improve your credit score before driving home to St. Louis in a new car, we can help! You’ll want to review your debts and come up with a payment plan in order to amp up your credit.
- Check Refinance Loans: Do some research to find out the average interest rate for your current credit score. Additionally, you’ll want to compare rates from multiple lenders. Some lenders will even match rates offered elsewhere if you ask.
- Choose a Cosigner: If you have a family member willing to cosign your loan, it may be possible to get a lower interest rate on your car loan, even if you have bad credit.
- Get In-House Financing: When you choose in-house financing, you’ll make payments to the car dealership rather than to the bank. If you’re able to make your monthly payments each time, you can easily improve your credit score over time.
What is a Good Interest Rate?
Getting a lower interest rate on your auto loan is a great thing, but what exactly is a good interest rate? The interest rate you are offered will depend on both your current credit score and the size of the car loan. While interest rates can be negotiated, drivers on average will be able to find interest rates between 3.2% to 12.9%. Here is an estimate of interest rates based on credit scores:
- 800 – 740: 3.2% average interest rate
- 739 – 680: 4.5% average interest rate
- 680 and below: 6.5% – 12.9% average interest rate
So, while there are some tips and tricks to finding out how to get a lower interest rate on your car loan, keep in mind that your credit score will always play a pretty big factor.
Rely on Green Light Auto Credit for Finance Tips!
