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5 Ways to Lower Monthly Car Loan Payments

5 Ways to Lower Monthly Car Loan Payments

If you’re trying to make savings or need to reduce the amount you’re paying each month on a car loan, this post is for you. We asked our Welland auto loans team to come up with 5 actionable ways to lower monthly car loan payments. This is what they came up with.

 

Ways to lower monthly car loan payments

 

There are a few things you can do to lower your payments. Which works for you depends on whether you’re planning the loan or already have it.

 

Choose a longer loan term

 

If you’re planning your auto loan, the easiest way to minimize monthly payments is to go for a longer term. Stretching the loan amount over more months means more chances to pay it off, which results in smaller monthly payments.

 

It will cost more over the length of the loan but if the monthly payments are a priority, that may be a cost worth bearing.

 

Put more money down

 

Putting more money down will reduce the overall loan amount, which will also lower the monthly payments.

 

Your down payment can lower the overall amount, reduce payments, improve your chances of qualifying for the loan and reassure lenders you’re a lower risk. All good things when you’re looking at auto loans in Welland!

 

Refinance your auto loan

 

If you’re already paying an auto loan and it’s becoming difficult, you could consider refinancing. Much will depend on your situation, credit score and how far into the loan you are, but it can help.

 

Refinancing for a smaller amount or over a longer term can save you money each month. If your credit score has increased significantly, that could save you money too.

 

If you only just started paying the loan, you may not get the same benefits as you would if you’re a year or two into it. Talk to one of our team who can help.

 

Talk to your lender

 

If you need to reduce your auto loan payments because you’re in financial difficulty, talk to your lender.

 

We all want you to succeed and we all want you to be able to pay off your loan. Lenders have a range of options they can use to help and may be willing to use them to help you.

 

Make sure to discuss it with them before you miss a payment though. They are much more amenable if you discuss your situation before falling behind!

 

Shop around for auto loans with the experts

 

If you’re in the market for a Welland auto loan, make sure to contact our team first. We have access to a wide pool of lenders willing to work with people in all kinds of situations.

 

We can help you shop around for a great deal, offer advice on how to apply, help with the application and even find you a great deal on a car to buy with the loan!

 

If you need help or advice on anything to do with auto loans in Welland, contact Car Nation Canada today, we can help!

 

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