Services
Insurance
Loans
Repairs
Advice
About

How do you get a low APR car loan?

What do I need to do to get a low APR car loan? I haven’t gotten any offers with a low APR, and I don’t know if I’m doing something wrong or just looking in the wrong places.

avatar
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
While car loans with flexible terms and low APRs are appealing, they aren’t available to everyone. Typically, low APR car loans are only offered to borrowers with good credit scores and low debt-to-income ratios.
That said, you can use these tips to get a lower APR car loan:
  • Save for a down payment. Most lenders offer better APRs to borrowers who pay a big chunk of their principal upfront. Typically, the payment will need to be at least 10% of the loan to make a difference.
  • Shorter repayment term. If you can afford a higher monthly payment, opt for a shorter repayment period. This will typically reduce your interest rate.
  • Find a cosigner
    . Ask someone with an excellent credit score to cosign your loan. That way, your lender can rest assured that they’ll get their money back. As a result, you can typically secure a lower APR.
  • Try a different lender. When it comes to interest rates, some lenders are more flexible than others. For example, credit unions often offer lower interest rates than banks.
Once you get your new car, you’ll also need to pay for an insurance policy on top of your loan. Luckily, the
Jerry
app can help you find the best rate on the coverage you need in minutes.
Just download the app, answer a few questions, and Jerry will help you compare personalized quotes from over 50 top providers like Progressive and Nationwide for free. Jerry helps users save an average of $879 a year on car insurance—and it only takes a minute to sign up.
View full answer 
WHY YOU CAN TRUST JERRY
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.

Join 4M+ members in lowering their car insurance

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