AMERICANS paid a record-high average of $48,301 for new vehicles in August.
With no end to the auto inventory shortage in sight, knowing how to lower your car payment is more vital than ever.
The auto industry’s inventory is motivating drivers to exercise more options to lower their monthly car payment[/caption]
Refinancing is the most obvious choice if you want to lower your vehicle’s monthly payment.
Interest rates have recently increased — but your credit score likely has as well, The Penny Hoarder reports.
Your credit score is a primary factor that lenders evaluate when generating your interest rate.
Drivers with the highest credit scores are perceived as trustworthy when repaying debts.
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Around 65% of cars financed were for drivers with a credit score of 661 or higher, NerdWallet reports.
Alternatively, some lenders may allow you to restructure your loan to extend the borrowing term or reduce the term’s interest rate.
If there’s one advantage to the auto market’s inflated prices, it’s the fact that you can get more money than usual for selling your car.
If you sell your vehicle, you can take the money and purchase a less expensive ride to lower your monthly payments.
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Buying a cheaper car after you sell your vehicle will also allow you to pocket any money you didn’t spend on your next model.
Dealers are paying more than usual for used vehicles — but you can expect to a higher profit from a private sale.
A reliable long-term strategy to reduce car payment costs is to make extra payments when it’s affordable.
If you live in an urban environment, renting your car can help you grab extra money to make additional monthly payments.
There are several ways out of expensive monthly car financing[/caption]
Additional payments mean you pay off your loan faster.
A shorter auto loan equals cheaper monthly payments in the long run.
Other drivers may shorten their auto loan length through a larger down payment.