3 Tips for Getting a Good Car Loan Interest Rate


Just because you have bad credit that doesn’t mean you’re stuck with a high interest rate. That’s the beauty of financing a vehicle with My Ride! We have the resources to give you some “wiggle room” when it comes to interest rates. Especially if your credit isn’t the best.

We don’t need to work with the banks. If you’ve been turned down for a loan before, or if a lender has offered you super high interest rates because of your credit, don’t waste another second worrying about it. If it means getting you into a car, at a better rate, we’ll use our own money and operate on our own terms. Which means we set the rules.

We’ve successfully financed more than 30,000 people in the past, which gives us the confidence—and the dollars—to put our trust in you.

That being said, there are still some things you can do to make sure you get approved no matter where you decide to apply.

Here are 3 tips for getting a good car loan interest rate.

#1: Choose the Shortest Term You Can Afford

The shorter the car loan term, the lower the interest rate will be.

So the first thing to do is establish your budget. Decide how much you’re willing to spend on a car every month (it’s never a good idea to spend more than 15% of your monthly income on a vehicle), and then pick the shortest term available that allows you to spend that amount of money.

The result: you’ll pay your new car off as fast as possible, and you’ll get a lower interest rate at the same time. You’ll be saving money hand over fist.

#2: Establish Good Credit

A good credit score can go a long way towards getting you a low interest rate. If you don’t have a great credit score right now, that’s not necessarily a bad thing. Consider your next vehicle as a stepping stone towards a better interest rate in another year or two.

If you finance a vehicle and pay your bills on time every month, your credit score is likely to get better. Which means in a year or two you can trade that car in for something better, and getting an even lower rate!

#3: Buy a Car with a Down Payment

If you have the ability to pay for a bit of your vehicle with cash up front (this is called a Down Payment), not only are you paying off a portion of the vehicle immediately, but you’re helping secure a better car loan interest rate at the same time.

Remember, only put down what you know you can afford. Make sure you leave yourself enough money for the monthly payments.

If you can manage to pay two or three thousand dollars up front, that money will go a LONG way in the end.

Get Approved Today with My Ride

We’ve done this before. In fact, we have helped over 30,000 people across Canada secure auto loans at interest rates they could afford. Lots of those people had poor credit. Lots of those people had no credit at all.

Regardless of your credit situation, we can help you!

We have years of experience navigating the world of auto financing. And because we use our own money, we don’t have to play by a bank’s rules. Bad credit doesn’t have to mean a bad interest rate.

We understand that financing a vehicle can actually be used as a tool to help rebuild your credit. In order to do that, though, you need an interest rate you can afford.

While a shorter loan term is a great choice, it’s not the best one if the monthly payments will eventually become too much for you. If you default on the payments, it’ll affect your credit score and ultimately leave you in a worst position than before.

Don’t set yourself up for failure! Talk to us today and we’ll be happy to work with you to find a solution that works: not just today, but years down the road as well.