4 Tips for Lowering Your APR on an Auto Loan

Get Car Financing
Even with poor credit.

January 27, 2012

If you have an auto loan on your new car, then you would be interested in lowering your annual percentage rate (APR), which is how much you have to pay per year. Lowering the APR on your car loan can save you hundreds of dollar each year in interest charges. Here are a few tips to help you lower your APR rate.

1. Have Good Credit Rating

To lower your APR, you need to have a good credit rating and a steady job. If you have a good credit rating with steady income, then you would have to pay small installments and you would have a lower APR. On the other hand, if you have an unsteady job or a bad credit rating, then you would have to pay bigger installments with a bigger APR. 

2. Refinance Auto Loan

Halfway through your loan you may apply to refinance the auto loan. If you have been able to stay current with the auto loan, and have a strong income record, the bank will work with you to refinance the loan for a lower interest rate.

3. Use Home Equity Credit

You can lower your APR by securing a loan through your home equity line of credit. This will help you to pay off the current loan with the high interest rate, and then only pay on the amount that is left over.

4. Pay on Principle

Each month you can help your yearly APR by paying extra on the principle of your loan. This will lower your total cost and cause the loan to be renegotiated at a lower rate.


$1 Credit Report

Get your credit score now!
Get a copy of your most recent credit report too.

Get Your Report & Score

Auto Refinance

Refinance your car or truck now. Get a better interest rate and lower payment.

Refinance Your Car

Need a Car Loan?

It only takes a minute.
Search New Cars by Loan Payment »

View estimated loan payments based on local rebates and financing offers.

Loan approval is not guaranteed and is subject to credit application and approval of the lender. Individual loan terms may vary. Use of this website constitutes acceptance of CarsDirect.com's Terms of Use, Disclaimer, Privacy Policy, and Cookie Policy.

Privacy Terms of Use Do Not Sell or Share My Personal Information Disclaimer Cookie Policy Manage Preferences
COPYRIGHT 1999-2023 MH Sub I, LLC dba CarsDirect.com