How do I avoid paying high interest rates on my car loan?

I don't want to pay more interest than I have to on my car loan. What are some tips to minimize interest payments?

Answer
Perhaps the best way to avoid paying high interest rates on your car loan is to shop around. By shopping around, you can compare rates from all types of lenders, including third-party options, national chains, and local banks and credit unions. By visiting all of these different options, you can get the best rate for your car loan.
That said, you still have a few other hacks to help you get the best interest rate for your car loan, including:
  • Going with a shorter term rather than a longer one
  • Building up your credit score
  • Making a larger down payment
  • Adding a cosigner with strong credit
When you consider buying a car, you should also budget for other car ownership expenses, including maintenance, gas, and car insurance. But one great way to save cash on car insurance is through the Jerry app. Jerry compares personalized rates from more than 50 top providers, including Nationwide, Allstate, and Travelers, and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 23, 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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