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?

Answer
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.
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.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store

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 — it's 100% free