How to Get Lower Interest on a Car Loan in South Carolina

Many car shoppers ask us, “How can I lower my car loan interest rate?” If you’re in the market for a new or pre-owned vehicle and also wondering how to get a lower interest rate on your car loan, the team at Mercedes-Benz of Florence is here to help. Learn more below!

How Can I Lower My Car Loan Interest Rate?

Can you lower the interest rate on a car loan? While it’s not guaranteed, getting a lower interest rate on auto loans is certainly possible. Here’s how:

1. Check your credit score. Knowing your credit score can help you decide if it needs to be cleaned up a bit more before you apply for a car loan.
2. Clean up your score. Making sure your credit score is in a good place before applying for a car loan can help in getting you a lower interest rate.
3. Check for Refinance Loans. Make sure you know the range of interest rates that are average for your credit score and loan amount. Be sure to compare rates and payment terms from multiple places and ask your current lender for a lower rate. If denied, let them know you’ve been offered lower rates elsewhere and ask if they’re willing to match or beat the lowest offer.
4. Enlist a cosigner. Having someone cosign for your loan might get you a lower interest rate on your loan, especially if you have bad credit.
5. Consider in-house financing. In-house financing means you’ll be making payments to the dealership instead of the bank. If you make your monthly payments on time, consistently, then you’ll also be able to get a higher credit score.

What Is a Good Interest Rate?

While getting a lower interest rate on auto loans is possible, it largely depends on your credit score as well as the size of the loan. And while they can be negotiated, on average, drivers can find an interest rate ranging from 3.2% to 12.9%. Based off of credit scores, here are estimated interest rates:

• 800 – 740: 3.2% interest rate (on average)
• 739 – 680: 4.5% interest rate (on average)
• 680 and below: 6.5% – 12.9% (on average)

Secure a Low-Interest Car Loan at Mercedes-Benz of Florence

There are many ways you can lower the interest rate on a car loan. Now that you know how to get a lower interest rate on a car loan, we invite you to contact us with any other financial questions. We’re happy to provide you with all our best car-buying tips, including how to sell your car to a dealer.