How to Get a Better Car Loan Interest Rate: Tips from North Carolina Toyota

Jan 8, 2013

The majority of car buyers, especially those who are buying a new car, rely on car loans to make the purchase. With a loan, you want to get the lowest possible interest rate in order to decrease the cost of borrowing money. The most ideal car loan is one that is offered with 0% interest, but these are not available to all car buyers. Here are some tips from a North Carolina Toyota dealer for getting a better car loan interest rate:

Ask about Rebates and Incentives

Dealerships can offer rebates and incentives on certain models of vehicles from time to time so before you pick a car and start shopping for car loans, find out whether there are rebates or incentives on any vehicles you may be interested in buying. If you combine rebates and incentives with dealership financing, you might get the best deal from the dealership.

Consider New Toyota Vehicles

Car loans for new cars often have lower interest rates than financing provided for used cars. New cars cost more, so you are likely to have a higher monthly payment but if your goal is to pay less interest on the vehicle you buy, choosing a new Toyota might be the way to go.

Borrow the Money for Less Time

The longer you borrow money for, the lower your monthly payment but better interest rates are often given to borrowers who have shorter loan terms. If you can handle a higher payment, borrowing the money for fewer years should result in a better interest rate that keeps your costs of borrowing down.