What's the best way to reduce my car loan rate for my 2017 Kia Optima?

Interest rates have fallen since I bought my Kia Optima and began my loan payments. Can I reduce my car loan rate—if so, how?

Answer
You can reduce your car loan rate, but not right away. The best way to reduce the rates on your Kia Optima is to refinance your car. Applying for a refinance entails many of the same steps as applying for a loan.
There’s just one catch: you need to have positive equity on your current loan to quality for a refinance. That is, your outstanding balance must be less than the value of the car when you apply. To achieve this, pay off your principal—or double up on payments to quicken the process.
Start the refinance process by shopping around for the best rates. Apply with more than one business to increase your chances of approval. If you have good income and credit scores with little debt, you should be approved for a refinance, which will decrease your monthly rates.
Have you considered you might also be overpaying on your car insurance? Use Jerry to compare your policy to dozens of competitive quotes. If you find a new policy you like, you can cancel and switch in-app.
Eric Schad
Answered on Oct 20, 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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