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How Can I Lower My APR at a Dealership?

If you are considering buying a car, chances are you will need to take out a loan to get the car you want. If this is the case, you should know that dealerships can charge higher interest rates than average. So how can you lower your APR at a dealership? Here are some tips.

Improve Your Credit Rating

The first step to lowering your APR is to improve your credit rating. This means paying all your bills on time, keeping low balances on credit cards, and not closing unused accounts. You should also avoid opening new lines of credit unless necessary.

If you follow these steps, it may be possible for a dealership employee or salesperson who has access to your information to help lower the interest rate on a vehicle loan before finalizing paperwork with them.

Make a Larger Down Payment

Making a larger down payment will lower your APR and loan term. If you can put down 20% or more, the bad credit car dealers may be willing to give you a better interest rate.

If you don’t have enough cash for a large down payment, consider getting help from someone else who does, such as an older family member or friend who has good credit. You will need their permission and signature on all documents related to the purchase, including any co-signers.

Refinance Your Car Loan

If you are shopping for a car and want to lower your APR, refinancing your current loan is the easiest way. Refinancing allows you to get a new loan with a lower interest rate and use the money saved on interest payments to pay off other debts.

You should also consider taking out a longer loan term if possible. This will lower monthly payments even more than refinancing. However, remember that it won’t be worth it if you can’t afford those higher monthly payments when they come due at the end of this long term.

Pay on Principle

The more you pay on principle, the less interest you will pay in the long run. The idea behind this is that you have a lower monthly payment and don’t have to worry about paying off as much of your loan each month.

The way it works is simple. If you make payments on time every month, your lender will report them to credit bureaus as “paid as agreed.” Then they will count those positive marks toward lowering your credit score over time, which means better terms when applying for new loans or lines of credit in the future.

Consider a Co-Signer

If you want to lower your APR at a dealership, consider asking a friend or family member if they would be willing to co-sign on your loan. A co-signer is someone who agrees to pay off the car dealerships low credit if you don’t.

You can also ask a credit union, bank, or other financial institution for help by providing them with information about your financial situation and asking if they have any special programs available for people with bad credit scores. Your co-signer must have a good credit history for this option to work well for both parties involved.


If you want to lower your APR at a dealership, you only have to ask. The people who work at dealerships are friendly and helpful, and they want to help you get the car you want. They will be happy to help you lower your APR so that you can save money on your loan payments.