Buying a new car? Here are four ways to bring down the cost of the loan.
1. Improve your credit score
If you don’t need to purchase a car right now, consider waiting until your score increases. The closer you can get to a perfect credit score, the closer you get to receiving the lowest possible interest rate. This can save you a significant amount of money over the life of your loan.
2. Buy a cheaper car
While a bit obvious, downsizing to a less expensive vehicle is worth considering. You’ll probably save on car insurance, too.
Refinancing to a lower interest rate frees up cash with a lower monthly payment, cuts down the total amount paid over the life of the loan, and allows you to pay off your loan sooner. If interest rates have dropped or your financial picture has improved, consider refinancing.
4. Be sure to borrow enough
Loans of only a few thousand dollars typically come with much higher interest rates than loans of higher amounts. Consider borrowing enough to qualify for a lower interest rate, or dipping into savings for smaller amounts.
Buying a new car? Request a car insurance quote here or visit us at 426 N. Pine in Ellensburg.