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How do I lower the interest rate on my used car loan?

My current car loan rate is 5.9%, but I've seen plenty of lenders offering a lower rate. How can I take advantage of this?

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Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
In the grand scheme of things, a 5.9% interest rate on your
car loan
isn’t all that bad. But, if you’ve noticed loan rates decrease since you bought the car, you may want to consider refinancing.
Refinancing a car is a popular move for many buyers, especially as interest rates decrease. The process is almost identical to getting a traditional car loan. The only difference is that you’re paying off the original loan using the new loan.
To get refinanced, you need to shop around for rates and apply for the one that saves you the most money. Then, you need to gather your documentation, including:
  • Proof of income
  • Proof of insurance
  • Proof of residency
  • Vehicle information
  • Payoff letter from your current lender
If you have good credit, steady income, and everything checks out, you should be able to refinance the car with ease and save money.
To save additional money, check out the
Jerry
app the next time your car insurance policy is up for renewal. In just minutes, compare quotes from up to 50 different insurers. Jerry will even cancel your old policy for you!
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