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Here are 10 ways to reduce your car payment, both before and after youve purchased a vehicle.
Choosing the basic model can save thousands, which equates to alower payment.
Or maybe you’ve got the option to check out certified pre-owned vehicles instead of a new one.
This can give you the new car feel with a much lower payment.
Its a good idea to put at least 10% to 20% down on your vehicle purchase.
This helps give you some equity in your car purchase, and the amount you gotta borrow.
The interest rate on your loan is determined by your credit score, down payment amount and loan terms.
If you have good credit, you could usually secure the lowest rates with most lenders.
Its also a good idea to shop around for car loans.
Check with localbanks, credit unions and online lenders to see what rate you qualify for.
They may offer pre-qualification without hurting your credit score, so you might get several quotes before choosing.
Negative equity in your old car would result in higher debt with the new vehicle.
Assuming you purchase a less expensive vehicle, you could end up with a lower car payment.
This can reduce your monthly car payment and potentially help you save money in interest.
Some lenders will adjust your monthly payments after making a lump-sum payment on your loan.
Look for a good used vehicle or certified pre-owned car that is cheap and reliable.
This can help lower your payment and total cost of car ownership.
Should You Refinance Your Car Loan?
It can be worth it torefinance your car loan.
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