How to Get a Lower Interest Rate on a Car Loan

A common question we receive at Lafayette GMC is, “How can I lower my car loan interest rate?” Getting a lower interest rate on auto loans is a top priority for many Indianapolis car shoppers, and we completely understand why that is the case. That is why we are happy to share how to get a lower interest rate on a car loan. Read on to find out the answer to the question, “Can you lower the interest rate on a car loan?”

How to Lower Your Car Loan Interest Rate

Can you lower the interest rate on a car loan? Absolutely! There are a few ways of getting a lower interest rate on auto loans. You can use our payment calculator to get an idea of how the vehicle of your choice will fit into your budget. 

1. Check your credit score. Does your credit score need a boost before you apply for a loan? It is a good idea to be aware of your current score to see if you can make any improvements before the application process begins. 
2. Consider refinancing. Can you lower the interest rate on a car loan you already have? For some Frankfort drivers, refinancing may be an available option. If you have been consistently making payments on time, your credit score has likely improved since you initially took out the loan. You could be a great candidate for refinancing. 
3. Enlist a cosigner. How can I lower my car loan interest rate if my credit is less than ideal? If your credit score is not where you’d like it to be, and you are having trouble getting approved for an auto loan, consider the assistance of a cosigner. 
4. Consider in-house financing. For most Delphi shoppers, in-house financing can be a great alternative. In-house financing means you’ll be making payments to the dealership instead of the bank. Dealerships can often offer better rates. 

What is a Good Interest Rate?

Now that you know how to get a lower interest rate on a car loan, you may be wondering about what is considered a good interest rate. The interest rate you receive depends on your credit score as well as the size of the loan. Based on credit scores, here are estimated interest rates:

• 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)

Getting a Lower Interest Rate Auto Loans is Possible with Lafayette GMC

How can I lower my car loan interest rate? Shop with Lafayette GMC! We’ll help you secure some of the most competitive rates in the Lafayette area. We truly put the customer first in everything we do. Contact us today for more information.