5 Crazy Things To Do With Your Tax Refund

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CREDIT REPAIR

6 Ways To Get The Cheapest Car Loan


By: Sandra Tahoe         May 6th 2024 @ 12:20pm


For most people, buying a car is one of the largest investments they will make in their life. Just like with any major purchase, you need to have a solid strategy for how you plan to finance your new car.

We’ve rounded-up the six best ways to get the cheapest car loan so that you can enjoy your car without the burden of monthly repayments:

  1. Improve your Credit Score

    The better your credit score, the lower your interest rates will be. With the difference between a poor and excellent credit score impacting your repayments by up to $200 a month (or $6,535 over a 36-month loan!), it’s vital to get your credit score as high as possible before applying for financing.

    There are two options to improve your credit score. Either slowly build it over many years or quickly repair it by utilizing a credit repair service, such as CreditBear. If you want that car anytime soon, a good credit score is essential.

  2. Check Payment Calculators

    Repayment calculators are perfect to learn how down payments, loan terms, interest rates and other factors impact monthly payments. We suggest the FICO Loan Saving Calculator as a great place to see how improving your credit score can alter your repayment amounts.

  3. Make a Big Down Payment

    Making a hefty down payment of at least 20 percent can immediately reduce your monthly repayments.

    One way to quickly collect this money is to use your tax refund check. Companies such as H&R Block and e-file are masters at helping you maximize your refund for free.

  4. Apply for a Longer Loan

    Car finance terms are typically three to four years. Although you’ll pay off your debt quicker with a shorter loan, the monthly repayments are higher. By extending your loan term, your immediate repayments will be smaller and spread over a longer period.

  5. Compare Various Financing Options

    It is important to know how you will be financing your purchase before setting foot on the dealer lot. Make sure to compare rates online, check out your local bank or credit union and speak to any financial institutions you already deal with a relationship with. Auto dealers sometimes have financing options available but these tend to be quite pricey.

  6. Consider a Used Car

    Buying used is often the easiest way to get a better deal. Although you don’t get that new car smell, the fact that used cars are significantly cheaper means your monthly repayments will be much lower. Additionally, used car financing can be cheaper and easier to obtain if you’re struggling with new car financing.

Feeling overwhelmed about what to do first? We recommend you get your free credit score consultation and take the first step to repairing your credit score by calling 855-895-4466.

Know of another way to get a cheaper car loan? Let us know on Facebook!

 

Sandra Tahoe

Sandra has been writing about the nuts and bolts of personal finance since 2009. Her work has appeared on a number of popular finance sites, including the popular small business blog and home money maker. As a homeschooling mom of two, she's always looking for ways to make the most of every dollar.