How to Get Lower Payments on Your Next Car Loan
How to Get Lower Payments on Your Next Car Loan
Posted on February 24, 2023
We all want more for less and it’s something we are always on the lookout for. While we cannot wave a magic wand to get you lower car loan payments, we can suggest things you can do to find the best deal.
We tasked our auto loans team to identify some actionable ways to get lower car loan payments. This is what they can up with.
Accessing Lower Car Payments
A car loan is a significant investment and something you’ll be paying for the next 3-7 years. That makes getting a good deal essential, which is what this post is all about.
Here are 5 simple ways to minimize your car loan payments as much as possible.
Increase Your Credit Score
Your credit score influences how much interest you’ll pay on a car loan, so it a great place to start.
If you have time, improve your score as much as possible by paying off debt, paying everyone on time, using a credit card while keeping the balance low and generally being fiscally sensible.
Save For a Down Payment
While you’re working on your score, save as much as you can for the down payment. It will not only lower the amount you need to borrow, which improves your chances of being accepted, it can also result in a lower interest rate.
You’re putting your money at risk as well as the lenders, which those lenders will appreciate. Not all lenders will reduce the rate but some will.
Buy a Used Car
Did you know you can use a car loan to buy a used car as well as a new one? If money is an issue, opting to buy a certified used car instead of brand new can be a way to save a lot of money.
Rates can be slightly higher depending on the age of the car but you’ll be borrowing a lot less, which will result in lower payments.
Trade in Your Current Car
Using a trade in and down payment can take a big chunk off a car loan. Depending on what you were planning to do with your old car anyway, this could be enough to make the car loan much more affordable.
We buy used cars and let you trade them in against new or certified used cars so you’re covered whichever way you go.
Shop Around For Your Car Loan
Finally, we recommend shopping around before you sign on the line. Different lenders can charge wildly different rates and a little research and comparison could save you a significant amount of money.
Once you have found the best deal you can, contact one of our Simcoe auto loans team and we’ll see if we can beat it!
Contact Unique Chrysler for help, advice and competitive Simcoe car finance and leasing.
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