How to Get Lower Interest Rate on a Car Loan

Hands Doing Calculations with Calculator

 

You might be asking “How can you get a lower interest rate on your car loan?” This is something we get asked a lot when Queens drivers are speaking to our finance department. The final cost of a used vehicle includes the interest rate, and many people are wanting to know how to lower that cost as much as possible. There are some useful strategies for refinancing or getting a great deal with the help of our finance department. Find out more ways to get a great interest rate on your auto loans, then contact us today with any questions. 

Getting a Lower Interest Rate on Auto Loans: 5 Tips 

Getting a lower interest rate on auto loans may seem to Brooklyn drivers like a task limited to financial experts, but with some proper planning, it’s a task that’s easily done. If you’re wondering “How to get a lower interest rate on a car loan?” follow these five tips:

  1. Check your credit score: To state the obvious, your credit score is perhaps the biggest factor in determining your interest rate, so look it up before you pursue a car loan. 
  2. Improve Your Score: Those wondering “Can you lower the interest rate on a car loan?” should look into making regular payments on all their bills and other strategies for raising their credit score. 
  3. See if You Can Refinance Loans: So, how can I lower the interest rate on a car loan? Once you’ve figured out your credit score and made steps to improve it, check out the range of interest rates for your credit score. You can also choose to shop around Bronx for different interest rates. 
  4. Get a cosigner: If you have bad credit, you can still get a lower interest rate with the help of a cosigner.
  5. Consider in-house financing: If you’re shopping around for a car loan, you should strongly consider in-house financing at a dealership. Dealerships want to see you walk away with a vehicle, so they’re likely to help you with competitive interest rates! 

Use the payment calculator at Major World to get a sense of what your final monthly payments will look like!

What is a Good Interest Rate?

If you’re asking about how to get a lower interest rate on a car loan, it’s good to know what a good interest rate goal should be. The interest rate depends on two major factors: the size of the loan and your credit score. Interest rates are always negotiable, but they will tend to range from 3.2% to 12.9%. Here are a few interest rate estimates ranked by credit score: 

  • 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)

Another way to find lower interest rates is to look at dealership specials on vehicles for deals on down payments and financing!

Come Into Major World For All Your Financing Needs

We help drivers in the Long Island City area every day find affordable vehicles with solid interest rates. Between our used vehicle specials and the ability to apply for financing online, you’ll be able to find the right car for you in no time and at an incredible rate.

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