Are you in the market for a new or used vehicle? We are, but the thought of adding another monthly bill makes me cringe. I need to save money, not give it to someone else! Saving money on this car loan will not only help our family, it will make me feel a little better about the purchase!
Take a look at these 6 easy ways to save money on car loans — your bank account will thank you!
Start by looking at your credit score. High interest rates are a result of poor credit. Work on rebuilding that credit, to get a better score. Check your credit reports from all three of the major credit bureaus. Shop around for the best loan offers/terms.
Think about the loan term. One person’s situation is different than the next, and a 3 year loan may be better for one person over the other. Do what works for you, but keep in mind interest and long term goals.
Get rid of add-ons, which definitely add up! (go figure!) You can easily spray Scotch Guard on those seats instead of having this process done at the dealership. Same for VIN etching, which is often offered by your local police department for free! Every single thing adds to the loan, which, over time, will cost way more than you had hoped.
Shop around. Not only for your vehicle, but for your loan. Compare rates. Research. Is it easier to get a loan through your bank vs the dealership?
Pay less interest by tacking on extra funds to your loan balance. (Make sure there is no penalty for paying off a loan early, which is the end goal!)
Use those auto loan calculators. Determine how much you can afford. Go in with knowledge vs an empty mind. Know what you can afford.