How to Get Lower Interest on a Car Loan

If you’ve ever wondered, “How can I lower my car loan interest rate?” you’ve come to the right place! Getting a lower interest rate on auto loans can be accomplished in several ways, ranging from increasing your credit score to enlisting a co-signer. Keep reading as the finance experts at Tim Short Chrysler of Middlesboro have broken down the various ways that Pineville and Harrogate drivers can secure a lower interest rate on a car loan. 

Can You Lower the Interest Rate on a Car Loan?

Getting a lower interest rate on auto loans is a viable option for many Middlesboro drivers. Follow the steps below and you too can be on your way to securing a lower interest rate on your car loan:

1. Check your credit score: It’s good to know your credit score before applying or re-applying for a car loan. This will help you gauge whether or not you need to work on boosting your credit score before applying for a loan. 
2. Increase your score: Raising your credit score can be a difficult process, but it is totally worthwhile. Having a good credit score will help you to secure a lower interest rate when applying for an auto loan. 
3. Get several offers: Knowing the average range of interest rates for your credit score is helpful as you can compare rates and payment terms between multiple lenders, because you can ask your current lender for a lower rate. Even if they deny you, reiterate that you’ve received lower interest rate offers from other lenders to see if they will match or beat those offers! 
4. Enlist a cosigner: Getting a lower interest rate on auto loans is easier with a cosigner, especially if you have a low credit score. 
5. Consider in-house financing: When you opt for in-house financing, you’re making payments to the dealership as opposed to a bank or an outside lender. Making consistent, on-time payments will help to increase your credit score! 

What is a Good Interest Rate?

You know how to get a lower interest rate on a car loan, but what exactly is considered a good interest rate for your credit score? Your interest rate is dependent on your credit score, and it can range on average from 3.2% to 12.9%. Here are the estimated interest rates you should get with your 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)

Finance Your Next Vehicle With Tim Short Chrysler of Middlesboro! 

Still wondering, “How can I lower my car loan interest rate?” The finance experts at Tim Short Chrysler of Middlesboro are here to help! We’re always ready to help our Ewing-area customers secure the best interest rates possible. Contact us today with any questions that you have, then be sure to browse our other car buying tips where you can find helpful information about the car buying experience.