How to Get Lower Interest on a Car Loan

A common question we hear at Kearny Mesa Kia is, “How can I lower my interest rate on a car loan?” Our team understands that current high interest rates can be challenging for Kearny Mesa shoppers, especially those who are shopping on a tighter budget. That is why we are happy to share the tips listed below that can help you get the best interest rate possible. We also offer a number of new and used vehicle specials to help you save even more on the perfect vehicle. Learn how to get a lower interest rate on a car loan in our handy guide. 

How Can I Lower My Interest Rate on a Car Loan? 

1. Check your credit score. Find out what your credit score is before you start the shopping process. Knowing your score can help you determine if now is the right time to buy or if you should start taking steps to boost your credit score and get a better interest rate. 
2. Work on boosting your score. Steps like constantly making payments on time and in full can lead to a better credit score and, in turn, a better interest rate on your next vehicle. 
3. Consider refinancing. If you already have a vehicle loan, you may be a good candidate for refinancing. Make sure you know the range of interest rates for your credit score and loan amount. Then, you can compare rates and payment terms from multiple lenders before asking your current lender for a lower rate. If your lender denies the request, let them know you’ve been offered lower rates elsewhere and ask if they’re willing to match or offer a better amount.
4. Add a cosigner. If your credit score is less than ideal, but you are in need of a new vehicle now, adding a cosigner to the loan can help you get a better rate. 
5. Think about in-house financing. In-house financing often gives you a better offer. 

What is a Good Interest Rate?

If you are wondering how to get a lower interest rate on a car loan, you may also be wondering what is considered a good interest rate. This depends on your credit score and the loan amount. On average, drivers can expect an interest rate ranging from 3.2% to 12.9%. The estimates below can be of assistance: 

• 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)

Find Affordable Vehicle Financing at Kearny Mesa Kia

As mentioned above, we understand that current high-interest rates can be a hindrance to San Diego and Kearny Mesa shoppers in need of a vehicle. At Kearny Mesa Kia, we will work with you to find a vehicle and a financing plan that meets your needs and budget. Contact us today if you have any questions, and don’t forget about our current specials.