Car loans are more affordable than ever but they are still a significant portion of your monthly income. Wouldn’t it be great if you could lower that monthly cost so it becomes even more affordable?
That’s what we’re going to discuss today. Here are some simple things you can do to minimize the monthly cost of a car loan.
Check your credit score
Higher scores get cheaper car loans. Lower scores and bad credit can still access great deals but you will pay more. One way to keep your credit score high is to make sure it’s accurate and to pay off as much debt as possible before your application.
Mistakes happen, it’s a fact of life. Make sure there are none on your credit file. Access your credit report and make sure it’s completely accurate. Make sure your debt levels are accurate, that all personal details and payment details are 100% correct.
If you spot a mistake contact the organization who made the mistake and have them put it right. That alone can prevent your score being reduced.
Save for a larger down payment
Down payments are a tricky thing. What do you do while you’re saving that down payment? Do you have a car in the meantime? Can you save enough money to make it worthwhile? Can you afford to wait?
The larger your down payment, the lower the level of the loan and the cheaper it will be. Saving like this won’t be for everyone but, if possible, it can significantly lower your monthly payment.
A larger down payment can also widen the pool of lenders, which in turn, could offer better deals.