How to Lower Car Payments

Car Payments

Car loans now last an average of more than six years and come in at an average of $503 each month. Interest rates remain low, but those payments can still be tough to work into a sensible budget, causing the idea of default or repossession to loom heavy. Fortunately, there are a few common-sense strategies for how to lower car payments.

Can I Refinance My Car Loan?

Refinancing can be a good option if your vehicle isn’t too old and you don’t owe more than it’s worth. Sometimes people accept loans with a higher rate due to their own financial circumstances. If your credit scores have improved since the loan was initially taken out, feel free to shop around for auto loan refinance online or through a local credit union.

Can I Negotiate My Car Loan?

Most people don’t like to negotiate, but it can be a surprisingly effective strategy for how to lower car payments if you play your cards right. If your financial situation has changed and you need to make lower payments, it’s sometimes possible to negotiate with your lender to allow lower payments over a brief period or stretch out the length of the loan. In some cases, a temporary deferment of your car payment may also be a possibility.

Can I Consolidate My Loans?

Consolidating means taking out one larger loan to cover the repayments for several separate loans. With only one payment to worry about each month, it becomes much easier to keep track of your financial situation. Consolidating a car loan with other loans can lower your monthly payment, although the interest rate may be higher. Make sure it’s going to work in your individual case by speaking to a financial professional.

Sell or Trade Your Car

If you really need to find out how to lower car payments and have had no luck with the options detailed above, you might think about either selling or trading your car. You can transfer to a cheaper vehicle that offers lower monthly payments and possibly a shorter loan lifespan. If you sell, you can roll the balance into a new loan. Switching to a leased vehicle can also help you save.

Contact Xpress Cash to Learn More

At Xpress Cash, we’ve helped drivers across Idaho, Michigan, and Wisconsin with everything from down payment advice to the question of buying new or used. Contact us today for financial advice and assistance or strategies on lowering your car payments, or feel free to visit your local Xpress Cash.