PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How do you lower interest on a car loan?
I need to get a new car, but I can’t afford the interest rates on most of the car loans that are available to me. Is there something I can do to lower them?
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Even if you can afford higher interest rates, it’s always smart to find ways to save money.
Fortunately, there are a few things you can do to lower your interest rates on your car loan, such as:
- Make a large downpayment. Many lenders will lower the interest rates if you can do this.
- Negotiate the sales price. Instead of trying to negotiate the interest rate (you often can’t), try talking to the seller about the price of the car itself. If you borrow less money, you’ll pay less in interest.
- Find a cosigner. Most lenders use your credit score to determine your interest rates, so poor or limited credit can raise your interest rates. If you think that your credit score might be raising your interest rates, finding a cosigner with excellent credit can help a lot.
- Change the repayment term. If you opt for a 72- or 80-month car loan, you’ll often see a significant increase in interest prices. If you can afford a loan with a 60-month repayment period or shorter, you’ll usually save on interest costs.
While you’re looking for ways to save on your car loan, why not shop for better insurance rates, too? It’s easy when you use the
Jerry
app! Jerry compares personalized rates from more than 50 top providers and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!MORE: What is a good credit score for a car loan?
View full answer
- Gregory R.
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
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
