We all want to save money. Whether it’s to have less going out each month, to help build a college fund for the kids, or something else entirely, we all want more cash at the end of each month. So how can you get a cheaper car loan on your current car or for your next one?
Car loans are a part of modern life and are almost inescapable for many. Unless you live in a city where public transport is plentiful, you’re going to need a car. With the price of new cars steadily rising, we have to find more and more money to buy them.
This inevitably leads to more expensive car loans. But is there a way to find a cheaper car loan while still getting a decent car?
Yes, there is!
In fact, there are a couple of things you can do.
Use a Large Down Payment
It may seem obvious but putting more money down on your new car can get you a much cheaper car loan with less interest.
Whether you have to save or use savings, the more you put down, it’ll lower the overall cost of the loan.
You do have to balance that though, especially if you need to save for the down payment. You have to balance the delay caused by saving against price inflation and the inconvenience of keeping your current form of transport for the foreseeable future.
Combining Down Payment and Trade-in
You could theoretically use a smaller down payment if you also trade in your old car. If you’re in a position to do that, you could use part cash and part trade in to help reduce the overall amount you borrow.
You can also take practical steps to maximize the value of your trade in by cleaning it, servicing it, repairing any damage and making it so the dealership has to do very little to prepare it for sale.
Buy Used Instead of New
Another practical way to use a cheaper car loan to buy the car you want is to buy it used instead of new. Even buying a car 1-2 years old can save 30-40% over the new cost. That’s quite the saving for very little compromise.
Sure, you won’t have the new car smell or that feeling of being the first owner, but neither will you have the higher car loan payments or initial depreciation to cope with either!
Work With Experts!
While we cannot promise to save you hundreds of dollars a month, working with car loan experts will give you access to the widest market and pool of lenders. This can mean cheaper car loans, more favourable terms and lots of other perks too.
We can also help you with your application, with loan prequalification, with the paperwork and even help find you a car!
If you’re in a position where you need a bad credit car loan or other specialist lending, we can help with that too!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!