Anyone who is looking for a vehicle is certainly searching for the best way to get low monthly car payments. Let me guess, you are no different. Fortunately, I have 7 tips for you to get the most bang for your buck on your monthly car payments.
Let's not waste any time and instead, let's dive into tips that will help you obtain a low monthly payment on your next vehicle.
- Maintain a good credit score - It's important to realize that repairing bad credit is a bit like losing weight: It takes time and it’s not quick. The best way is to pay your bills on time so that you never have a bad rating.
- Make your term longer – Car loans typically range from 36-60 months. While a shorter loan can get you out of debt faster, your payments will be larger. A longer, 60-month car loan will yield you those lower monthly payments you are looking for even if you have to pay a little more in interest.
- Consider paying a large down payment – Putting down a large down payment on your car has several advantages. Putting money down on a car lowers the amount you have to borrow thus reducing the total amount of your loan and the monthly note. It reduces your interest rate and it is really helpful if your credit score is less than stellar.
- Do your research and shop around – Wanna be in the driver seat when it comes to financing your new ride? Make sure you research all loan options out there that you qualify for and have an idea of how low you can go on your monthly payment.
- Utilize payment calculators available on dealership websites – Online payment calculators can help cut through the red tape of the loan process. They can boost your negotiating power and help you choose the best loan for your budget.
- Refinance your vehicle later down the road – If you originally purchased your car with a short term, high-interest rate loan, refinancing it may be an option. Refinancing a car loan involves taking on a new loan to pay off the balance of your existing car loan. Most of these loans are secured by a car and paid off in fixed monthly payments over a predetermined period of time, usually a few years.
- Consider a used vehicle - The average used car loan is typically less than what you'd find with a new vehicle, therefore, your monthly payment will be lower.
You do not have to go into great debt to get a suitable vehicle for your lifestyle and wallet.
Get in touch with me, I am happy to help!