Dear Terry, I currently have an auto loan with an interest rate of 16.95 percent. The monthly payments are $389. I have tried to refinance with my credit union and several other financial institutions. However, I have not had any luck in getting an offer of a lower interest rate. What should I do? Is trading for a cheaper car a good option? -- T.L.Dear T.L., You don't say what your credit score situation is, so it's difficult to know if your current interest rate -- though high -- is the best available. Trading for another car likely won't lower your interest rate if you have credit problems. Consult with a lender about what you would need to do to your credit situation to qualify for a lower interest rate. Here are this week's reader questions:•Tough to find dealership reviews online•How can I get rid of a bad interest rate?•Can my parents take my sister's car?•Is "buyer's remorse" grounds for cancellation?If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter. advertisementRelated Links:Auto loan rates: March 26, 2009Saving on insuranceWhere's my car bailout?Related Articles:Vehicle leases going upOld loan not added to newCan't sell leased car
Dear Terry, I currently have an auto loan with an interest rate of 16.95 percent. The monthly payments are $389. I have tried to refinance with my credit union and several other financial institutions. However, I have not had any luck in getting an offer of a lower interest rate. What should I do? Is trading for a cheaper car a good option? -- T.L.
Dear T.L., You don't say what your credit score situation is, so it's difficult to know if your current interest rate -- though high -- is the best available. Trading for another car likely won't lower your interest rate if you have credit problems. Consult with a lender about what you would need to do to your credit situation to qualify for a lower interest rate.
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter.
A little research could save you BIG on interest.