How to Get the Best Interest Rate on an Auto Loan

December 16th, 2014 by

We don’t all have perfect credit. If we did, we wouldn’t need to worry about how to get the best interest rate on anything. Lenders would be rolling out the red carpet to give us money at rock bottom rates.

If you have a few blemishes on your credit history — and who doesn’t? — or you are still trying to build your credit history, you will likely have a harder time getting the loan you need to buy a car. You might find someone willing to give you the money, but you might have to pay exorbitant interest rates for the “privilege.”

Here are a few things you can do to get the best interest rate on an auto loan, regardless of your credit history:

Shop Buy Here Pay Here Dealers

Buy here pay here dealers in Ohio offer financing to those with poor credit history and no credit history. Yet they also offer lower interest rates than what you would get at a larger dealership. While the rates may be a bit higher than what you would get with great credit, they will still be affordable, and they will be lower than what you could get elsewhere for the same loan amount.

Put Together a Down Payment

Any amount you can put toward a down payment will lower the amount you will have to borrow, which will lessen the risk for lenders. The more you put down, the lower your interest rate will be.

Save as much as you can before you go shopping for a new car. Even a couple hundred dollars could help you shave your interest rate, which could help you save hundreds or thousands of dollars over the life of the loan.

Improve Your Credit

Anything you do to improve your credit can lower the interest rate you get for an auto loan, whether you are shopping at large dealerships or at buy here pay here dealers in Ohio. Pay off whatever outstanding balances you have, and work hard to pay your remaining debts on time. Any improvement you can make to your credit score could result in a lower interest rate, which could save you a lot of money over time and make it easier for you to meet your financial obligations (and continue improving your credit).

Buy here pay here dealers in Ohio offer a range of financing solutions for people of all financial backgrounds. Consider shopping for your next car at one of these dealerships to reap the savings and get a car that you’ll love.