How do you avoid paying interest on a car loan?

Is there any way I can get out of paying interest on a car loan? I want to get a new car, but I’m worried that I won’t be able to afford the insurance rates. What can I do?

Find out if you’re getting ripped off on your car insurance in less than two minutes.
No spam · No long forms · No fees
Find savings (100% Free)
rating white
3.5k Ratings
Answer provided by
Liz Jenson
Answered on Feb 15, 2022
Unfortunately, it’s very difficult to avoid paying interest on a car loan. You’ll need to score a 0% APR to avoid any additional fees as you’re paying off your car, and a 0% APR is very difficult to get since interest rates are largely calculated based on your credit score. If your score is below 750, it’s unlikely that you’ll be offered a 0% APR loan.
However, there are some things you can do to improve your car loan interest rate, including:
  • Opting for a shorter repayment period
  • Shopping around for the best terms before settling on a loan
  • Paying off any outstanding debts or otherwise improving your debt-to-income ratio (DTI)
  • Always paying your bills on time
  • Refinancing your loan if necessary
It might also help to lower your monthly car insurance payment so you can use the extra cash for your vehicle. The Jerry app makes it quick and easy to find the best rates available on the coverage you need. Just download the app and answer some quick questions to see quotes customized for you.

Here to save on car and home insurance? Great, you do that. We’ll do everything else.

Sign up in under a minute.
No need to fill out forms or shop around. Sign up in 45 seconds to start saving. Jerry does the rest.
Jerry collects and analyzes your current coverage.
Say hello to Jerry, your new insurance agent. We’ll contact your insurance company, review your current plan, then find the coverage that fits your needs and saves you money.
Get the best options before your renewal.
Jerry does all the picky, busy work by comparing prices and coverage from more than 50+ insurance companies. We compare what we find to your current policy and offer you the three best options before every renewal.

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