Question

How to lower car loan interest rate

A lower interest rate on a car loan is possible by maintaining a good credit score, refinancing, or a shorter loan term to name a few.

1. Maintain a good credit score by having a consistent payment history. This will reduce your APR as well.

2. Another foolproof way is to refinance the loan to a lower APR, a long term or both.

3. If your credit score isn’t good, have a credit worthy co-borrower. This means lower risk for the lender as well as lower APR for you.

4. Always negotiate the APR with the lender (having a good credit score will help with the negotiation).

5. Choose a shorter loan term. Even if you will have to pay more each month, the total interest will be significantly lower.

6. Make a large down payment. This reduces the amount you borrow. Smaller loans mean better interest rates.