How to Get Lower Interest Rate on a Car Loan

If you’re interested in getting a lower interest rate on an auto loan, you came to the right place. The finance team at Land Rover Monmouth will be happy to help you learn how to lower APR on a car loan so you can secure the financing that is the perfect fit with your Rumson-area budget. Learn all about how to get a lower interest rate on a car loan, then get pre-approved for a low interest loan at our dealership in Eatontown today!

What Is a Good Interest Rate?

First of all, you need to understand that your interest rate will be determined by your credit score and the loan amount. Interest rates are negotiable, so getting a lower interest rate on an auto loan is possible. However, you won’t have very much wiggle room to work with. Check out the estimated interest rates based on credit scores below:

• Credit Score of 800–740: 3.2% interest rate (on average)
• Credit Score of 739–680: 4.5% interest rate (on average)
• Credit Score of 680 and Below: 6.5% – 12.9% (on average)

Getting a Lower Interest Rate on an Auto Loan 

If you want to figure out how to lower the APR on a car loan, you’ll want to focus on your credit score and financial situation. Here are some tips on how to get a lower interest rate on a car loan:

1. Check your credit score: Knowing your credit score can help you decide if it needs to be cleaned up a bit more before you apply for a car loan.
2. Compare offers: You should make sure that you know the range of interest rates that are average for your credit score and loan amount. Then, compare rates and payment terms from multiple places to find the deal that will best suit your budget. If you don’t secure your desired rate right away, you may be able to refinance down the line as long as you have improved your credit by making your car payments on time.
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 or no credit.
4. Consider in-house financing. In-house financing means you’ll be making payments to the dealership instead of the bank. As noted above, if you make your monthly payments on time, then you’ll also be able to get a higher credit score.

Explore Your Financing Options with Land Rover Monmouth

Feel free to contact us if you have further questions about how to lower the APR on a car loan. We’ve helped buyers from in and around Colts Neck get the financing they need on an exciting new Land Rover and we’re ready to do the same for you. Meanwhile, make sure you take a look at our current new vehicle specials to take advantage of some of the best lease and finance deals in the Red Bank area.