How to Get Lower Interest Rate on a Car Loan

Interest is a service fee that lenders charge you for providing you with a loan. One of the most effective ways to save on your next vehicle is by getting a lower interest rate on your auto loan, but how can you lower your car loan interest rate? You can lower your interest rate on your car loan by following the steps presented in this guide, and then, reach out to a Five Star Automotive Group dealership location near you! Learn all about how to get a lower interest rate on a car loan, and then, explore our directory of locations. 

How to Lower Your Car Loan Interest Rate 

Getting a lower interest rate on auto loans is fairly straightforward. So, then, how can you lower your car loan interest rate? You can lower your interest rate on a car loan by following these steps: 

1. Check Your Score: Interest rates are directly correlated with your credit score, which we’ll discuss soon enough. That means it’s important to know what your credit score is, so you can have an idea of what interest rate you’ll likely qualify for.
2. Boost Your Score: If your score is lackluster, identify easy ways to boost it before you apply. Are there small loans weighing you down that wouldn’t be too hard to pay off? If so, take care of them to clean up your score. 
3. Explore Refinancing: If you have a pre-existing car loan, and you want to negotiate for a lower interest rate, you’ll need to refinance your loan. If you have better credit than you did when you first negotiated the original loan terms, then, you’ll be in a great position to leverage for a lower interest rate!
4. Get a Cosigner: If you have a friend or family member with great credit who’s willing to co-sign on your loan, then, you’ll find it much easier to negotiate for low interest. 

What is a Good Interest Rate Given Your Credit Score?

As we mentioned earlier, credit score correlates closely with interest rates. To get an idea of which interest rate percentage you likely qualify for given your score, check out the average interest rates offered for each score below: 

• 850 – 781: 5.64% interest rate (on average)
• 780 – 661: 7.01% interest rate (on average)
• 660 and below: 9.60% – 15% (on average)

Let Us Make Getting a Lower Interest Rate on Car Loans Easy 

You’ve read our handy primer on how to get a lower interest rate on a car loan, but how can you lower your interest rate the easy way? Get in touch with a Five Star Automotive Group dealership near you! You can lower your interest rate on a car loan by working with one of our dealerships, each of whom have access to national lenders and already set our interest rates to compete with the lowest offers on the market. Plus, all new vehicles we sell come with a lifetime powertrain warranty, and our used vehicles come with a limited powertrain warranty, which takes your savings even further!