Before even beginning the process of attempting to lower your auto loan rate, familiarizing yourself with the terms of the original agreement is an important step. Some lenders may put in prepayment penalties that require you to pay extra money if you plan on paying off your debt earlier than the contract allows. However, by comparing that additional cost with the savings generated by the lower auto loan rate you may find that it is worth paying a couple of hundred dollars extra now, to save substantially more over the life of your loan.
If there are no prepayment penalties involved, you will simply need to compare your new lower auto loan rate to what you are already paying. Some sites will allow you to easily compare all the new lower loan options currently available, and if you can get a reduction of at least one full percent off of your loan, it may be worth your while to make the change.
To ensure that lowering your automobile loan rates is worth the time and effort, make sure to do the math, then double and triple-check it for good measure. Only you can determine what is your best financial move.
Although signing on the dotted line for an automobile loan may feel like a life long commitment, like any other financial arrangement, there are some steps you can take to lower your auto loan rate. With interest rates at historical lows, those who are still paying off their auto debt may opt to refinance their current loan and possibly lower their car loan rates.