Save Money on Your Next Auto Loan!
Are you looking to buy your next car? You may be really excited to get into the driver’s seat of your next used car, but you may not be excited at all about taking out a loan on your car. If the thought of getting a car loan leaves you with chills, here’s some information that will allow you to save money on your next car loan.
Saving Money on Car Loans
One way that you can campaign for a lower rate is to get pre-approved for a loan from your bank or credit union. If you get pre-approval, you’ll then be able to ask for a lower rate at the dealership–which results in savings for you. Also, you will want to make as large a down payment as you can. The more you are able to put down on your car, the cheaper your car payments will be, and the lower your loan rate. A good rule of thumb is to put between 20% and 30% down on your car.
Also, you will get a much lower rate on your loan if you buy a used car, rather than a new car. New cars depreciate so quickly, and it is much harder to get a great rate on a new car. Not only will you save money on your auto loan, but you’ll also get a cheaper insurance rate on your used car.
One more tip–when you make payments, be sure you round up your payments to the next hundred. For example, if your car payment is $372, go ahead and round it up to $400. You will save money over time on your payments, and pay your car off more quickly.