How to Get Lower Interest on a Car Loan

Can you get a lower interest rate on a car loan and drive the vehicle you want around Live Oak? Yes, it is possible to score a lower interest rate and feel extra good about your investment. So, what is a good interest rate on a car loan? Learn the answer to this and related questions today. We also dive into how to get a lower interest rate on a car loan. If you have any questions after reading our guide, our finance experts are here. We will walk you through every phase of the car loan process, so contact us at any time. Our Lake City dealership is here for you! 

How to Lower Your Car Loan Interest Rate

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 Rrefinancing options. 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?

The interest rate you receive depends on your credit score as well as the size of the loan. And while it can be negotiated, on average, drivers can find an interest rate ranging from 5.25% to 15.77% on new cars. Based on credit scores, here are estimated interest rates:

• Superprime: 781-850 – 5.25%
• Prime: 661-780 – 6.87%
• Nonprime: 601-660 – 9.83%
• Subprime: 501-600 – 13.18%
• Deep subprime: 300-500 – 15.77%

Finance Your Kia with Rountree Moore Kia

Can you get a lower interest rate on a car loan and drive your ideal vehicle around Macclenny and Gainesville? Absolutely! If you have any additional questions about how to get a lower interest rate on a car loan, let us know. We encourage you to review our car-buying tips for more helpful info, such as what a simple interest loan entails and whether certified pre-owned cars are worth it!