You can approach experts like REVS Check to get a car history report which will help you make informed decisions. The car history report can be obtained by providing the VIN number or registration number of the car and paying an affordable fee.

You should try to get the best deal on your car loan which requires proper due diligence. The following tips will help you to get the lowest interest rates on car loans:

Maintain a Good Credit Score

The best way to get lower interest rates on your car loan is to maintain a healthy credit score. You should settle all your debts and credit card balances on time to have a good credit score.

Explore Multiple Lenders

While trying to get a car loan, it is strongly recommended to explore multiple lenders and opt for the one offering you the best deal. If you feel that a lender is not responsive to you and rigid, then there is no harm in walking out and exploring other sources for financing your car. You should also be clear on the terms offered by lenders. A lender may lower your EMI by stretching the tenure of your car loan. While this may seem like a good deal initially due to lower EMI, you will end up paying more interest on your loan.

Prefer Fixed Rate Loans

It is recommended to opt for fixed-rate loans. It provides you with a peace of mind related to your EMI payments and interest rates. If you opt for variable-rate loans, you can end up paying much higher if the interest rate on your loan increases. Fixed-rate loans allow you to plan your monthly finances better and stay clear of any uncertainty due to a sudden increase in your car loan EMIs.

Consider Refinancing Your Car Loan

Car loan refinancing is another popular option which can help you get better interest rates on your existing car loan. Car loan refinancing refers to replacing your existing car loan with a new one, from a different lender, with new loan terms. At the time of taking the loan from the original lender, you may have had a poor credit score, which resulted in higher interest rates. However, after a couple of years, your credit score may have improved, and you may have built up a good credit history with the lender. You can ask your existing lender to refinance the loan or switch to new lenders which are offering the lowest interest rates at that time.

Try Prepaying the Loan

You may get extra money during a year due to increments, work bonus, tax returns, etc. It is prudent to use these additional cash flows to prepay your car loans. While prepaying your car loans will not help to reduce your interest rates, it will help you to save considerably on interest payments. You will be debt-free sooner if you prepay your car loan and the savings from interest payment could be utilized for investments or other productive purposes.