Shop and Compare
Before you choose a lender, get out there and shop around. Go to various lenders and compare the deals. See what they offer you, and how much you can bring them down by. Once you have a list of loan quotes in hand, choosing the most pocket friendly one becomes a piece of cake.
Down Payment
Make a down payment. Always make a down payment. If you don't have a down payment at hand, then put off buying a car. Not only does this reduce the amount you have to pay back, but it gives you more room to negotiate with the lenders for a better interest rate. The typical car down payment is 20 percent, though some will let you get by for less, or even nil. It should be noted, however, that a 20 percent down payment will cover the amount depreciated during the first year of owning a new car. This means that during this first year, the car is worth more than current debt.
Credit Score
A high credit score goes a long way in lowering your car loan interest rate. A quick online check of your credit score can tell you if it's good or bad. If you know your credit score is outstanding, use it to swing at the bargaining table.
Security Down
Putting down a security will also positively affect your loan interest rate. A secure option is when something is used against the loaned amount. Since security counts against the loaned amount, you are considered a lesser risk, and hence a lower interest rate. There are many online resources to shop for lenders. Consumer reports magazines are another excellent source of information regarding lenders. Be cautious of hidden fees or extra service charges that can come back to haunt you.