How to Get Lower Interest on a Car Loan

Are you wondering, “How can I lower my car loan interest rate?” We at Woburn Toyota can help you with the answer. Learn more about auto financing, new Toyota models, and more so you no longer have to ask, “Can you lower interest rates on a car loan?” Trust the experts at our Woburn Toyota finance department to help you get the car loan you need.

How to Lower Your Car Loan Interest Rate

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. Clean up your score. Making sure your credit score is in a good place before applying for a car loan can help in getting you a lower interest rate.
3. Check for Refinance Loans. Make sure you know the range of interest rates that are average for your credit score and loan amount. Be sure to compare rates and payment terms from multiple places and ask your current lender for a lower rate. If denied, let them know you’ve been offered lower rates elsewhere and ask if they’re willing to match or beat the lowest offer.
4. 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.
5. Consider in-house financing. In-house financing means you’ll be making payments to the dealership instead of the bank. If you make your monthly payments on time, consistently, then you’ll also be able to get a higher credit score.

What is a Good Interest Rate?

The interest rate you receive depends on your credit score as well as the size of the loan. And while they can be negotiated, on average, drivers can find an interest rate ranging from 5.25% to 15.77% on new cars. Based on credit scores, here are estimated interest rates:

• Superprime: 781-850 – 5.25%
• Prime: 661-780 – 6.87%
• Nonprime: 601-660 – 9.83%
• Subprime: 501-600 – 13.18%
• Deep subprime: 300-500 – 15.77%

Finance Your Toyota with Woburn Toyota

From our Toyota credit services to our helpful finance experts answering questions you may have about getting a lower interest rate on auto loans. Whether you’re looking for that lower interest rate or you’re looking for help with a new vehicle, be sure to contact us.