Things You'll Need:
- Good credit rating
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Step 1
Get a copy of your credit report and dispute any claims on it that you think are mistakes. The three primary credit reporting companies-- Experian, Equifax and TransUnion--are required to give consumers a free copy of their credit history once per year (see Resources below). Looking at your credit report will give you an indication of whether or not lenders will give you preferred rates.
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Step 2
Start looking for a low interest car loan at your primary bank. This institute will be familiar with your credit history and has a record of how you manage your money. With good credit, your bank will often offer you the best rate.
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Step 3
Check with other local banks and credit unions to see if they offer you a better rate. You might be able to haggle for a lower rate, but loan quotes are generally hard to negotiate. Look online at some of the larger Internet lenders.
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Step 4
Sign up for the car loan with the lowest interest after you get several quotes. It's unlikely that your credit will go up very much in the immediate future, so settle for what you're offered unless you can postpone your car purchase for at least a year.
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Step 5
Refinance your car loan to get an even lower interest rate. To get the lowest rate, you need to refinance early in the repayment period. Look around for the best rates and fill out lots of paperwork if you decide to refinance.
