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Is there any way to renegotiate a car loan interest rate?
I signed a car loan about two years ago, but interest rates have fallen steadily since then. Can I renegotiate my loan’s interest rate?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Unfortunately, you cannot renegotiate your
car loan’s
interest rates—but you still have the option to refinance. On average, car owners pay $85 less every month by refinancing their auto loan.When you
refinance a car loan
, you’re essentially renegotiating a new car loan to pay off your old one—often at a more favorable rate. Assuming that you’ve maintained a decent credit score and you still have steady income, you should qualifiy for refinancing.When considering auto refinance, some other important questions to ask are:
- What monthly payment do I want? Lowering your APR is one of the most common reasons people choose to refinance their car loan—but refinancing can also give you the chance to adjust your monthly payments.
- What is the value of my vehicle? If your car’s current value is less than the value of a refinanced loan, it won’t be worth it to refinance.
As with any other type of loan, the key to finding a better deal is to shop around. Comparing offers from multiple lenders will help determine where you’ll find the lowest interest rate, and you may even be able to shorten the length of time it takes to pay off your new loan. Some online insurance comparison tools (like
Jerry
) can simplify this process. MORE: How to refinance a car loan in 6 easy steps
View full answer
- Gregory R.
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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.
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