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Your interest rate on your auto loan can add to your payments.
Keep reading to learn 7 ways to get a lower APR on your auto loan.
Interest is charged based on your total car loan amount.
The interest rate impacts how much interest you pay over time.
Here are some of the top ways to lower your rate and save money.
Improve Your Credit Score
How do you qualify for a car loan?
Your credit score can have a huge impact on your car loan rate.
Now, this only makes sense when the cost of getting a new loan can save you money.
You should be wary of extending your existing loan beyond the original loan terms.
The best way to get a low rate on yourauto loan refinanceis to shop around.
The best online lenders offer a wide range of loan terms and low upfront fees.
it’s possible for you to compare rates quickly to find the one that will save the most.
Putting down more money on your car loan shows the lender that youre a reliable borrower.
It also reduces your overall loan amount, which could then lower your interest rate.
Its good to talk to your lender about how the down payment can impact your loan APR.
Youll pay $6,343 in interest over the life of the loan.
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Shop Around for Better Rates
Dont use dealer financing only because its convenient.
Instead, shop around to find the best car loan rates.
Just as youre trusting them, they will need to trust you as well.
If you default on the loan, it can hurt their credit score too.
Dealership finance departments are usually flexible and can work with you on getting a lower interest rate.
The discount is usually around 0.25%, but this can save you money automatically.
Ask your lender if there are any auto-pay discounts available and sign up to get yours.
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