How to Lower Monthly Car Payments
In an ideal world, none of us would have a car payment, and we could all pay full price for new and used vehicles the day we drive them off the lot. But, for most of us, it’s just not possible to pay for a car outright even a used car or truck like a used Ford Super Duty. Even used cars and trucks can cost several thousand dollars, and many of us just don’t have that much money saved up. So, because monthly car payments are a fact of life most people have to deal with, we can at least take a look at some ways to reduce how much you pay for your car each month. These tips apply for payments to used cars and trucks like a used Ford Super Duty pick-up truck or any other used Ford model you love.
If you live in Berlin, Gorham, Jefferson, Milan, Bethel, Stoneham, Newry, or a surrounding area of New England and are in the midst of car shopping, these tips may help you get a lower monthly car payment than you expected. If you’re currently financing a car or truck like a used Ford Super Duty, these tips can help lower your existing payment so you have a bit more money at the end of each month.
Tip #1 Re-finance your auto loan: If your credit score has come up since you first bought the used car, you may be able to re-finance an auto loan for a lower interest rate and lower monthly payment. Experian, Equifax and TransUnion are three main credit bureaus that are frequently used by lenders, and you can check your credit score once a year at no cost to you, or you can check it as often as you like using CreditKarma.com, a website and smart phone app that allows you to keep track of your credit score as often as you like free of charge. When you see your credit score rise, head out to re-finance your auto loan and try to get a lower interest rate and monthly payment.
Tip #2 Pay down a part of your loan’s principal: By paying off a chunk of your loan balance, your total interest costs will go down, and you may also be able to get a lower monthly payment. When you pay down your principal, you can contact your lender about re-financing the loan.
Tip #3 Consider leasing a vehicle rather than buying it: Leasing vs. buying is a huge topic of debate when people are car shopping, as there are numerous benefits to both. One benefit of leasing is that the monthly payments are offer lower than if you were to buy the car. The lease payment will be based on an amount less than the car’s total value. For example, if the payments total $15,000 for buying the car, and because the lease payment total is less than the total value of the car, your monthly payments are smaller. You professional, knowledgeable car sales representative can explain the leasing vs. buying process to you while you’re at the car dealership, but be sure to do your own research online first. The more you know, the better prepared you will be and the more you will understand what the car salesperson explains to you.
Before heading out to your favorite car dealership near Berlin, Gorham, Jefferson, Milan, Bethel, Stoneham, Newry, or a surrounding area, please consider these tips to reduce your monthly car payment.
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