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What’s the best way to request a lower interest rate on a car loan?

Min asked:

We have a car loan that began in 2005 and have never made 1 late payment – every month the car loan was paid on time.

We’ve recently received offers from various banks/loans proposing a lower interest rate.

We want to stay with our current auto loan provider but want them to lower the interest rate… is that possible? If so, how should we approach this request?
Asked on: 2012-12-07 22:01:27


  1. you can always get a lower intrest rate according to my bank
    i can get them to refinance it at a lower rate sooo..
    try your bank after buying the car through the dealerships lender. if your bank wont refinance try your insurance company they may refinance it. I know State Farm Insurance refinances vehicles.
    it also is based on downpayment,payment history, and your credit score.

    then they may possibly fight to keep you as a customer by lowering your current intrest rate.

    do your home work first.

    Good Luck i hope this helps!!!

  2. Flyboy says:

    You signed a contract with a fixed interest rate for a certain period. The lender will reject your request for a lower rate leaving you no option but to continue to pay it. Alternatively, you might be able to get a line of credit with a bank at a lower rate, pay the car loan off and then pay off the bank loan with your former car loan payments. Be aware that many car loans have the interest front loaded. If you pay it off early you may be shocked that you would not have paid much interest going forward than if you simply kept the loan.

    In other words getting a lower rate could prove to be more expensive.

  3. jay says:

    find your local credit union, and apply there, they have good rates.

  4. oklatom says:

    You walk in, tell them you have received offers of a lower interest rate, but you really want to stay with them, so what can they offer?

    Their answer will dictate your next move.

  5. Tom S says:

    Flyboy is wrong.

    Call your lender, tell them you are interested in refinancing the balance at a lower rate. If everything that you say is true, shouldn’t be a problem. If they won’t do it, go somewhere else. You certainly don’t want to continue to give them your money if they don’t want to help you.

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