Can You Negotiate Interest Rates on Car Loans? How to Get the Best Possible Interest Rate

David Majedi

Feb 21, 2024

Quick Answer

Can you negotiate interest rates on car loans? Yes, you can negotiate interest rates when considering a car loan. However, there are several factors that can influence your success with negotiation.

Are you shopping for a used car and are looking to get the best possible price and interest rate? If so, you might want to consider negotiating your interest rate. Most car buyers choose to accept the first rate they are offered, and they might be surprised to learn that when it comes to financing, negotiating is often possible. With a little know-how and preparation, you can get a better interest rate for used car financing.

At Autorama, we are the used car dealership Toronto residents turn to when looking for the best prices and financing rates on used cars. When you are looking for a cheap car for sale, we are the experts you can count on. In this post, we outline what you should know about negotiating an interest rate and help you feel confident about the purchasing process before you step foot in a dealership.

Ways to Negotiate When Buying a Used Car

When it comes to negotiating during the car buying process, you have a few key points to negotiate on. Though most people know that you can often negotiate the price of a vehicle or the price of your trade-in, you might be surprised to learn that you can also negotiate on the loan term and the interest rate as well. Negotiating can feel uncomfortable, but learning the skill of negotiation can help you save hundreds if not thousands of dollars over the course of your auto loan repayment.

Always keep in mind that negotiation is going to be easier for those who have a good credit score and other bonuses such as a trade-in or down payment. Go into negotiations with an understanding of your strengths and show the dealership or lender why you deserve to have a better deal than the first one offered. See our post, Buy a Used Car with Confidence: Here’s What You Should Look for When Buying a Used Vehicle, for more tips on being prepared to buy a used car.

How to Qualify for a Better Interest Rate Before Your Visit to the Dealership

If you are looking for a used car for sale in Toronto and want to get the best possible interest rate, you’ll want to be prepared before you start shopping. It’s no secret that having a good credit score is one of the best ways to ensure that you qualify for better rates, but if that isn’t yet possible for you, you still have other options.

If a strong credit score isn’t on your side when looking to buy a used car, know that having a larger down payment can also help you to secure a better rate or term length. Also, consider the value of any possible trade-ins you may have. As you continue to build credit, you may also wish to try negotiating a better rate by refinancing in the future.

If you are looking for support with navigating the car buying process, the experts at Autorama are here to help. Contact a member of our team today and let us help you find a car that not only suits your lifestyle, but your budget too. 

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David Majedi

David brings a decade of experience to his role as Finance Manager at Autorama. Having served a diverse clientele with unique financing needs over the years, he has gained comprehensive knowledge of the market and forged created relationships with all lenders, including banks and private lenders.

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