How to Get Lower Interest on a Car Loan

Many Eatonton and Sandersville drivers ask us at Milledgeville Chrysler Dodge Jeep Ram Fiat, “Is getting a lower interest rate on auto loans possible?” Yes, there are many ways you can lower your interest rate on a car loan, such as enlisting a cosigner, pursuing in-house financing, and more. Learn how you can lower your car loan interest rate in Milledgeville below.

How Can I Lower My Car Loan Interest Rate?

Can you lower your interest rate on a car loan? While it largely depends on your credit score, getting a lower interest rate on auto loans is certainly possible. Here’s how to get lower interest on a car loan:

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 can help in getting a lower interest rate on auto loans.
3. Check for Refinance Loans. 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. Another way you can lower your interest rate on a car loan is by having someone cosign, 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 they can be negotiated, on average, drivers can find an interest rate ranging from 3.2% to 12.9%. Based on credit scores, here are estimated interest rates:

• 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)

Explore Your Financing Options With Milledgeville Chrysler Dodge Jeep Ram Fiat

Now that you know how to get a lower interest rate on a car loan, feel free to reach out to our finance department if you have any additional questions. We can also walk you through your options for refinancing a car loan. Our dealership is conveniently located near Monticello, so stop by when you’re ready to begin the financing process.