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How you can Lower your Car Loan Payments in Brantford

How you can Lower your Car Loan Payments in Brantford

If you’re planning on getting a new auto loan in the near future, we have a few actionable ways to lower the monthly payments. Each is accessible to anyone and can make a big difference to how affordable the loan is.

 

We asked our Brantford auto loans team to outline some actionable ways to lower your car loan payments. We hope they help!

 

Put more money down

 

It sounds obvious, but saving up for a larger down payment is a very effective way to lower your car loan payments. It means you’ll borrow less, which means paying back less, both each month and in interest overall.

 

Saving takes time and planning but a down payment is the single most effective way to lower the amount you borrow, and therefore, your auto loan payments.

 

Get more for your trade in

 

If you have a car you’re planning to trade in, make it look as good as it can so the appraiser will value it higher.

 

Reconditioning cars takes time and money and the more work the dealership has to do means a lower trade in offer. If you can reduce the amount of work needed, you’ll get a higher offer.

 

The less work the dealership has to do to prepare the car for resale means spending less too. That can mean a higher value offered to you.

 

Improve your credit score

 

While you’re saving for a down payment, how about improving your credit score at the same time? This can also lower your auto loan payments by reducing the interest rate you’re charged.

 

Higher scores mean less risk, which means lower interest rates. It takes time and effort but there is enough good advice out there, including on this blog, to help improve your credit score enough to lower your monthly payments.

 

Buy used instead of new

 

There is nothing like that new car smell but if you could still get a newish car for half the price, why wouldn’t you?

 

You’ll still get safety technology, new features, a new car feel and more, but for less. Buying a car that’s 2-3 years old could cost up to 50% less than buying new, which could make a significant reduction in your monthly payment.

 

Use a cosigner

 

If you have bad credit, rather than going it alone and risking higher rates or using a bad credit car loan, how about using a cosigner?

 

A cosigner guarantees your loan and will take it over if you default. This is a big reassurance to lenders, which they reward with a lower interest rate.

 

We’re sure there are lots of other ways to reduce your monthly auto loan payment but these are some of the more accessible and more popular.

 

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

 

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