Ways to make your car payments lower
Are you looking to buy a used car, but would like to find some ways to make your car payments lower? That’s where we can help. Buying a used car is actually a complicated process, but with our handy guide we can make things simpler.
Ways to increase your down payment
This one sounds like a no brainer, but it’s still important to mention. Increasing your down payment is actually the best way to lower your monthly payments and paying more up front will help you avoid being upside down on your car because you will have more equity invested in it. Plan around providing the largest down payment you can.
The best way to increase your down payment that people often overlook is simply trading in your current vehicle. The value from trading in that vehicles actually goes right towards your down payment. Not only is this an argument for trading in, but it’s also an argument against selling privately.
You can sell privately and sometimes you can even make more money, but typically this has to be done after you already secure your next car, and then that money doesn’t go straight into your new vehicle. Trading in is also simpler, safer, and much quicker.
Advantages of longer term lengths
When you are buying used, you can often pick how long you want your term length to be. Whether you want a one-year auto loan, a five-year auto loan, or somewhere in between, a loan can often accommodate. The longer your term length, the lower your monthly payment will be, but there is a downside.
Read More: What is a one-owner car?
The longer your term lengths, the longer you are stuck making payments, the more interest you tend to pay in the long run, and the greater risk you run of being upside down on your loan. We are not saying don’t do it, just do it with these facts in mind.
Why get a lower interest rate
This is easy to do in theory, but not always easy to do in practice. Really this means financing with a trusted source. You can go to your bank but if you go to a reputable dealership like Park Marina Motors in Redding, CA, they will actually check financing through multiple sources to get you the best interest rate possible.