How to Get a Lower Interest Rate on a Car Loan

If you’ve been wondering, “how can I lower my car loan interest rate?” then you’re in luck! The team here at Butler Lexus of South Atlanta near Peachtree City has created a guide on how to get a lower interest rate on a car loan. Check out the tips from our knowledgeable finance team today before you get behind the wheel of anew model with us!

How Can I Lower My Car Loan Interest Rate?

Can you lower the interest rate on a car loan in Newnan? This depends on your credit score, your lender, and a few other factors. Follow these steps below to start the process of getting a lower interest rate on auto loans:

1. Check your credit score. If your credit score needs a bit of work, making improvements before you apply for an auto loan can help secure a better interest rate.
2. Check for Refinance Loans. After reviewing our guide, you will understand the average loan interest rate based on credit score. You can use this information to shop around Fayetteville for the best loan and negotiate a more favorable deal. 
3. Enlist a cosigner. Turn to a trusted family member or close friend who can cosign your loan. This is a great way to secure an opportunity to improve your credit score.
4. Consider in-house financing. In-house financing means you will be working directly with the dealership instead of a traditional lender like a bank or credit union. This allows for some negotiating and wiggle room, as well as a chance to build stronger credit over time. 

What is a Good Interest Rate for an Auto Loan?

It’s important to keep in mind that your credit score plays a major role in your interest rate. While these can be negotiated, the average rate ranges between 3.2% and 12.9%. Learning how to get a lower interest rate on a car loan starts with knowing your credit score, or improving your credit score if it’s lower than you’d like. Based on credit score, 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)

Finance Your Ride in Union City

After learning about the interest rates per credit score, as well as how you can get a lower interest rate, find your favorite model in our online inventory and apply for financing online with Butler Lexus of South Atlanta. Contact us with any questions or to learn more financing tips!