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?

Answer
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!
Eric Schad
Answered on Oct 21, 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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