WORK SMARTER NOT HARDER: Here’s How to Lower your Car Payment

Paying off a car loan can be daunting.  However, there are ways to lower your car payment, according to The Penny Hoarder.

The main way to lower your car payment is to refinance your auto loan.  If you qualify, this can reorganize your payments into an easier, lower monthly amount, as well as bring down your overall obligation, by lowering the interest rate.

However, you may only qualify for a higher interest rate, over a longer term, which could lower the monthly payment…  But it would increase the price you will have paid for that vehicle, in the long run.

Other ways you could possibly lower your car payment include:

• Renegotiating your car loan – some financial institutions will re-negotiate your original deal.  Others will purchase your loan, then allow you to pay them less, each month.
• Making extra payments – check with your lender about it – less money each month might be acceptable if it comes every two weeks, or is deducted automatically from your pay.
• Automatic deduction from your pay – your lender may discount your payment for it.
• Making a larger down payment will do it.
• Renting out the car – especially if you’re not using it as much as you’d thought – check your insurance policy, first.
• Trading in the car – again, likely for something a bit less fancy.
• Selling the car – perhaps you don’t need it as much as you’d thought.  No payment!