How to Get Lower Interest on a Car Loan

Tiny car with coins and finance paperwork

Many Lexington drivers have asked us at Short Redmond SuperStore, “How can I lower my car loan interest rate?” We can help! Keep reading to learn how to get a lower interest on a car loan, and when you’re ready to move forward and choose your next pre-owned vehicle, contact our finance team. We take all the hassle out of used car financing and are conveniently located near Richmond!

Tips on How Can I Lower My Car Loan Interest Rate

  1. Check your credit score: First, check your credit score. You can get a free credit report from any of the three major credit reporting agencies every six months. The three agencies include Experian, Equifax, and TransUnion. 
  2. Clean up your score: Improve your credit score as much as you can by making payments on time. Also, look for any errors and work with the agencies to correct them.
  3. Check for Refinance Loans: Always compare rates and payment terms from multiple lenders before you make a decision. Also, ask your current lender to lower your interest rate. If they deny your request, tell them you’ve been offered a lower rate with another lender and ask them to match or beat the lowest offer.
  4. Find a cosigner: Having someone cosign for your auto loan that has good credit may qualify you for a lower interest rate if you have poor credit.
  5. Consider in-house financing: In-house financing simply means that you’ll be making payments directly to the dealership in Winchester instead of to the bank. If you make your monthly payments consistently on time, you’ll improve your credit score.

What is Considered a Good Interest Rate?

Getting a lower interest rate on auto loans depends on several things, including your credit score, the size of the loan, and industry trends. On average, Danville drivers can currently get an interest rate ranging from 3.2% to 12.9%. Here are the average car loan interest rates by credit score:

  • Credit score of 680 and below: An average of 6.5% – 12.9%
  • Credit score of 739 – 680: An average of 4.5% 
  • Credit score of 800 – 740: An average of 3.2% 

Finance Your Next Used Car with Short Redmond SuperStore

Now that you no longer need to ask “Can you lower the interest rate on a car loan?” turn to Short Redmond SuperStore for all of your auto finance needs in Lexington. We are happy to answer your questions about getting a lower interest rate on auto loans, saving up for a down payment, and estimating your payment. Contact us to get started today!

 

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