Services
Insurance
Loans
Repairs
Advice
About

Can I negotiate a car loan interest rate?

I went to my credit union to get approval for a car loan and they offered me 4.9%. However, I shopped elsewhere and found a 3.9% interest rate. I'd rather stay with my credit union, but I don't want to pay the higher interest rate. Can I negotiate this?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Yes, you can certainly negotiate your
interest rate
, especially if you plan on buying from a dealer. When you get a
car loan
from a dealer, they often work with local banks and credit unions to find you the best rate. However, they have the discretion to increase the rate and pocket the extra cash.
Credit unions, on the other hand, may or may not negotiate with you. Since you have a long-standing rapport with your credit union, they’re probably more likely to negotiate a rate with you than with someone they don’t know.
To increase your chances of getting a lower interest rate, you might also consider putting down a larger
down payment
if you can afford it. This can put your credit union’s mind at ease and, hopefully, they’ll consider the 3.9% rate rather than the 4.9% rate.
Wherever you decide to get your loan from, don’t lose money by overpaying for your required insurance.
Jerry
is a full-service car insurance broker that allows you to compare rates and find the best policy for the money in a matter of minutes.
View full answer 
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

Join 4M+ members in lowering their car insurance

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings