How to Get Lower Interest on a Car Loan

Have you found yourself wondering, “How can I lower my car loan interest rate?” Well, when you come to All Star Dodge Chrysler Jeep Ram, you can trust our friendly and knowledgeable financial experts to help you out, and you may just find that you’ll soon be getting a lower interest rate on auto loans! Find out some of the ways you can lower your car loan interest rate below, and then feel free to contact us and even apply for financing online!

Can You Lower the Interest Rate on a Car Loan?

You actually can get a lower interest rate on an auto loan by following these steps below:

1. Check your credit score: Before you apply or re-apply for a car loan, it’s good to know your credit score. You can know whether or not you need to work on updating your credit score before getting a loan.
2. Boost your score: This is harder than it sounds, but if you can manage it, having a good credit score will help you get a lower interest rate when applying for a car loan.
3. Check for Refinance Loans: It’s good to know the average range of interest rates for your credit score so you can find a loan that’s suitable for your situation. If possible, try to compare rates and payment terms between multiple lenders and even ask your current lender for a lower rate. Even if they deny you, try and tell them that you’ve had lower interest rates offered elsewhere and see if they will match or beat that offer!
4. Enlist a cosigner: One way to getting a lower interest rate on auto loans is through having a cosigner, and this will especially help if you have low credit.
5. Consider in-house financing: With in-house financing, you’re not making payments to a bank lender. Instead, your loan comes from the dealership and so that’s who you’ll be paying. If you stay consistent with your payments, you’ll work your way up to a good credit score!

What is a Good Interest Rate?

Now that you know how to get a lower interest rate on a car loan, let’s run down just what a good interest rate for your credit score is. Depending on your credit score, you’ll get a different interest rate, which can range on average from 3.2% to 12.9%. Here are the estimated interest rates you should get with your 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)

Finance Your Chrysler, Dodge, Jeep, Ram in Bridgeton with All Star Dodge Chrysler Jeep Ram

Still interested in getting a lower interest rate on auto loans? Come speak with the finance experts at All Star Dodge Chrysler Jeep Ram! We have a knowledgeable team of experts in our finance department, and we’re always willing to help our St. Louis and Florissant customers! While you’re still here, feel free to check out our entire new and used vehicle inventories and find your dream car today with us!