Things You'll Need:
- Money for a down payment on a car
- A good credit score
- A bank or financing institution with a good interest rate on auto loans
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Step 1
Shop around. Obviously shopping around for the lowest price on a car is a good idea, but you should also shop around when it comes to financing your car. Ask several different banks and credit unions about their auto loan rates. Look for specials or promotions; some banks will beat your current auto loan rate in order to gain your business. The lower your interest rate, the lower your monthly car payments will be.
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Step 2
Opt for a longer loan. Paying for a car over five years instead of four years will reduce the amount of money you have to pay per month. However, be aware that longer loan terms cost you more money in interest.
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Step 3
Put a down payment on your car loan. Any money that you put down will reduce the amount of money that you have to borrow, and in turn will reduce your monthly car payments.
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Step 4
Increase your credit score. Having a higher credit score will allow you to get a better interest rate on your auto loan. It will also make lending institutions more willing to work with you and give you the loan that you want.
Comments
soanyway said
on 11/30/2009 Great tips on car buying etc. I have recomn'd you. Pay it forward to all! ;-)
tracysmith159 said
on 9/26/2009 Great way to get low payments and a good car.
goodselfme said
on 7/31/2009 Good tips on lowering a car payment.TX
botticelli728 said
on 7/27/2009 Great info! 5*