How To Get The Lowest Car Payment

When it's time to buy a new car, there's a lot to consider. You may know the make, model, and trim level you want. Still, beyond that, necessary costs like auto financing, monthly car payments, and other expenses are lurking. This brings up the question: Is it possible to lower your car payment on auto loans, and if so, how can you get the lowest car payment while still paying less interest? Western Slope Ford welcomes you to our premier family-owned and operated Ford dealer, serving you since 1912. We acknowledge the financial strain that comes with purchasing a new vehicle and how it may alter your budget and spending habits. Our experts are here to help you get the best deal possible for your lifestyle and budget, and we invite you to view our top tips for how to save money on your car payments. Follow along to learn more, and visit your friends at Western Slope Ford to take a test drive in Grand Junction, CO.

If you're unhappy with your loan amount, lenders will likely recommend trying to boost your credit score. Boosting your credit score can lower your interest rate and translate to significant savings on auto financing. Improve your credit score by paying off debt and making on-time payments. A good credit score can help you qualify for lower monthly payments and a shorter repayment term.

As you shop for a new car, it's essential to consider which loan terms will work best for your budget. A longer car loan term can lower your monthly payment, but the total cost overall may be higher. Refinancing a car loan to reduce monthly payments by obtaining a lower interest rate with the same term as the current loan or selecting a longer loan term is another option to consider. This is typically because you'll pay less per month but more in interest over time. To avoid overpaying in interest, consider a shorter loan term. A shorter loan term may come with higher monthly payments, but you'll pay less overall interest. Many lenders recommend keeping your auto loan term to a minimum of 60 months for a new car and 36 months for a used car. Compare different repayment lengths before signing on the dotted line to determine which loan term is correct for you.

Use the 20/4/10 rule to calculate how much you can afford to pay for a car. To follow this rule, consider a 20% down payment over a four-year loan term and allow up to 10% of your monthly income to be spent on transportation costs. A sizable down payment can lower your monthly payments and improve approval odds for a bad credit car loan. If you cannot afford a 20% down payment, consider buying a cheaper car to save money. Used cars are typically more affordable than newer models, or you could also consider leasing as a cost-effective alternative.

Supplying a larger down payment can reduce your monthly car payment since you'll be financing a smaller amount. To reduce future monthly payments, consider strategies such as making extra payments, refinancing the loan, extending the loan term, paying off the loan early, and trading in or selling the car.

Refinancing your car loan can reduce your monthly payment and reduce the amount of interest you pay overall. If you choose to refinance, consider working with a different lender and research and compare interest rates to ensure you're getting the lowest rate possible. You may qualify for a lower interest rate if your credit score has improved.

Another way to save on interest is to pay off your car loan early. You can make extra payments, reducing your overall interest charges. Consider making biweekly payments instead of monthly or paying more than the minimum payment.

If you're looking for the lowest car payment possible, Western Slope Ford can help make that happen. Visit us today to discover which Ford is right for you!