Can I get a lower interest rate on an existing car loan?

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7 Responses to “Can I get a lower interest rate on an existing car loan?”

1. Robert S on: 4 November 2009 at 9:24 am

   Probably not.

   First off, when you bought the car as new, you got an interest rate for a new car, which is always lower than used cars.

   Secondly, with depreciation, you may not have enough equity in the car to justify a lower rate, or even a refinance.

   Instead of refinancing to get a lower interest rate, pay more on each monthly payment.

   All car loans are simple fixed interest, so anything you pay over your normal payment will be applied towards principle, thus lowering your total interest, your effective APR, and your loan term.

   Then, if something happens and you can’t pay the extra payment, make you normal car payment that month.

   It gives you flexibility, not the bank.
2. Amanda H on: 4 November 2009 at 9:24 am

   Why would they? You signed docs agreeing to a rate for th elife of the loan.

   You can call and question, sayiing you’re going to refinance with someone else,but I’d be suprised. Has your creidt gone up significantly that you would qualify for a better rate? You can always refi.
3. J D on: 4 November 2009 at 9:24 am

   Check with other lenders. Your only option is to refinance. If the rate isn’t better by at least a point, don’t waste your time. The fees will cancel out the better rate. Excellent Luck!
4. swickstrum on: 4 November 2009 at 9:24 am

   Join a credit union in your area. Normally credit unions have lower rates than banks.
   Wait about a month or two and apply for a new car loan through them. Clarify that you have a loan through such and such and you want a better rate. If you don’t get a better rate, try again in a year. Getting declined and/or turning a loan down will not lower your credit score; repeated attempts at a loan in the same month, or people looking at your credit too often will though.
5. Rich on: 4 November 2009 at 9:24 am

   What is your current rate? Interest rates have fallen slightly, but make sure that you look at any fees if you do refi.
6. b3t b0y on: 4 November 2009 at 9:24 am

   i don’t reckon so.. as far as i know, all bank never give any benefits for your on time payment.. to lower your interest rate it depends on your agreement, but i reckon all bank is only will raise it if the market condition is also raise the interest…
   if you want to lower, the only one option is you find another bank..you know the bank offer different interest rate, maybe you can find the lowest one.. or you can negotiate it with the new one so you can get the lower…
7. demon x on: 4 November 2009 at 9:24 am

   try this site, it’ll show you different options for a car loan. just fill out the form and you’ll see the results instantly.