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How do I lower the interest on my brand new car loan?
I just signed a car loan, but I found better interest rates elsewhere. Can I renegotiate the interest rate? Or do I need to do something else?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Since you already signed the paperwork on your
car loan
, you can’t do anything to change the interest rate now. The only way to get this new interest rate is to refinance, assuming you qualify for the lower rate. If you find a more favorable interest rate, then by all means, start the refinancing process. No limits exist as to how many times or how often you can refinance your loan. While your original lender may not love it, there’s nothing legally holding you there.
However, make sure that there are no prepayment penalties for paying off the loan early. Some lenders add a 2% to 4% penalty to keep buyers from immediately refinancing and to maximize their profits. If your loan has a prepayment penalty, you will have to weigh this fee against the amount of money you will save on interest to get to the right conclusion.
If you want to save time shopping for lower car loan rates, try using the
Jerry
app. No matter what your credit score is, Jerry makes refinancing your car easy by comparing quotes from multiple lenders to find a rate that works best for you. On average, car owners pay $85 less every month by refinancing their auto loan.View full answer
- Gregory R.
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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.
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