How to Get a Lower Interest Rate on a Car Loan

Whether you’re buying a new car or looking to refinance your current auto loan, you’re likely wondering how to get a lower interest rate on your car loan. The finance team at Five Star Cadillac can help! We’ll go over how you can lower a car loan interest rate and more. You can lower your interest rate on a car loan. Find out how with us!

What is a Good Interest Rate?

Before we dive into how to get a lower interest rate on a car loan, let’s find out what constitutes a good interest rate in Macon and Byron. Most customers get interest rates that range from 3.2 percent to 12.9 percent, based on their credit scores. Below we’ve listed ranges of credit scores and what loan rates they generally net:

• 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)

How to Lower Your Car Loan Interest Rate

As you can see, the key to getting a lower interest rate on car loans is having a better credit score. The good news is if you’ve been making your car payments on time since you first drove your car home to Robins Air Force Base, your credit score is likely better than it was when you purchased your car. Find out by checking your credit score. Then follow the next steps so you can lower your car loan interest rate:

1. 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.
2. 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.
3. 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.
4. 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.

Finance Your Cadillac with Five Star Cadillac

When you’re ready to get a lower rate on your car loan, turn to Five Star Cadillac! When you apply for financing with us, we’ll do the legwork to find the best loan rate available to you.