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?

Answer
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.
Eric Schad
Answered on Nov 16, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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