How to Lower My Interest Rate on My Auto Loan

A car loan can create a significant financial burden for anyone, even someone with a steady income and a low amount of debt. Hefty interest is tacked on to car loans. This can become frustrating for the borrower. However, you do not have to just settle for the given interest rate assigned to your car loan. Refinancing is an avenue for you to negotiate for a lower interest rate.

Instructions

1

Call the company that currently holds your car loan and ask them what the requirements for an interest rate reduction are and if you qualify for any reduction. These requirements could be an unexpected financial hardship, notice of a more competitive rate or whatever the company chooses.

2

Call and search online for several banks, loan companies and credit unions and ask about interest rates on car loans.

3

Write down all information given by each company. You may want to make a chart or comparison table.

4

Visit websites such as Bankrate.com or CapitalOne.com to access car loan rate calculators and loan comparison tools available there.

5

Choose a company and apply for a refinancing loan.