Can you negotiate an interest rate on a car loan?

I've been working with a dealership to finance a car, but the final rate they quoted me is far higher than I wanted. Can I negotiate my rates? What's the best way to do so?

Answer
If your gut is telling you that you’re paying too much for your car loan, you should probably listen. Thankfully for you, you can definitely negotiate when it comes to your interest rate.
Since you’re working with a dealership, they will likely be a good middleman between you and your lender unless they offer in-house financing. If the dealer works with certain lenders, they have the discretion to charge you a higher rate than the lender quotes to make a profit on the deal.
However, that doesn’t mean you have to accept the first quote you get. The only way to know if you’re getting a good deal is to shop around. You can apply for as many loans as you want within a 14-day period and only have one hard inquiry on your credit.
If you’re looking to save money wherever you can, remember that you’re likely overpaying for your car insurance. Jerry can help you find hundreds of dollars in savings by showing you competitive quotes and handling all the paperwork needed to switch to a cheaper policy.
Eric Schad
Answered on Oct 28, 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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