Can you lower interest rates on a car loan? How can I lower my car loan interest rate? Auto refinancing options are out there, and you can rely on Land Rover Freeport near Garden City to guide you through them. Find out more about lowering your car loan payment below, then contact the Land Rover Freeport finance department with any questions.
How to Lower Your Car Loan Interest Rate
Check your credit score. Find out if you already have excellent credit or if you have since built good credit history since you applied for the original loan. This will give you leverage when trying to lower your interest rates, or let you know if improvement is needed on your score
Clean up your score. If your score needs improvement, you can do this by paying off as many credit cards as you can, and by continuing to pay them off fully each month.
Check for Refinance Loans. Doing research on the range of interest rates that are average for your credit score and loan amount will arm you with facts for renegotiating your interest rate. Take a look at rates and payment terms from several different sources. If denied, point out that you have seen lower rates elsewhere and will choose a different financer if necessary.
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.
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 and reduce those higher interest rates.
What is a Good Interest Rate for a Car?
On average, drivers can find an interest rate ranging from 3.2% to 12.9%, depending on the size of the loan and your credit score. Below are some estimated interest rates based on credit scores: