How to Get Lower Interest Rate on a Car Loan

Car-buying paperwork

How can I lower my car loan interest rate? We get this question a lot at Voss Honda, and it’s hardly surprising. The final cost of a new vehicle includes the interest rate, and many people field in Dayton the question “Can you lower the interest rate on a car loan?”. There are some useful strategies for refinancing or getting a good deal with the help of a finance center like Voss Honda. We cover getting a lower interest rate on auto loans below! 

 

 

Getting a Lower Interest Rate on Auto Loans: 5 Tips 

Getting a lower interest rate on auto loans may seem to Troy drivers like a task limited to financial experts, but with some proper planning, it’s a task that’s easily done. If you’re wondering “How can I lower my car loan interest rate?”, follow these five tips:

  1. Check your credit score: To state the obvious, your credit score is perhaps the biggest factor in determining your interest rate, so look it up before you pursue a car loan. 
  2. Improve Your Score: Those wondering, “Can you lower the interest rate on a car loan?” should look into making regular payments on all their bills and other strategies for raising their credit score. 
  3. See if You Can Refinance Loans: So, how can I lower the interest rate on a car loan? Once you’ve figured out your credit score and made steps to improve it, check out the range of interest rates for your credit score. You can also choose to shop around Sidney for different interest rates. .
  4. Get a cosigner: If you have bad credit, you can still get a lower interest rate with the help of a cosigner.
  5. Consider in-house financing: If you’re shopping around for a car loan, you should strongly consider in-house financing at a dealership. Dealerships want to see you walk away with a vehicle, so they’re likely to help you with competitive interest rates! 

Use the payment calculator at Voss Honda to get a sense of what your final monthly payments will look like!

What is a Good Interest Rate?

If you’re asking about how to get a lower interest rate on a car loan, it’s good to know what a good interest rate goal should be. The interest rate depends on two major factors: the size of the loan and your credit score. Interest rates are always negotiable, but they will tend to range from 3.2% to 12.9%. Here are a few interest rate estimates ranked by 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)

Another way to find lower interest rates is to look at dealership specials on vehicles for deals on down payments and financing!

Get Car Financing at Voss Honda

At Voss Honda, we help Tipp City drivers everyday find affordable vehicles with solid interest rates. Between our new and used vehicle specials, plus apply for financing online to see if you can get a good interest rate on a loan! Please contact us today with any questions about car financing, our specials, and more!

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