Are you under financial anxiety and experiencing stress because of excessive car payments? Cars are among the most expensive things Americans are willing to pay for, and over 100 million people in the country have monthly car payments. If you’re among them, keep reading to learn how to get the car payment down and get rid of burdensome financial stress.
1. Trade in for a Cheaper Car
Many dealerships offer trade-in value from your car. If you have a particularly expensive car, you can trade it in for an older model that meets your needs. This can significantly drop your monthly payment by hundreds of dollars.
2. Make Payments More Often
An easy way to quickly lower your auto loan is to double up on payments, sending them biweekly or weekly instead of monthly if you can afford it. This will hasten the speed at which you pay off your loan, though it may take some creative budgeting to accomplish.
3. Get a Side Gig to Make Extra Payments
If you can’t afford to make payments more often, try getting a side hustle that can help pad your budget. Delivery driving, freelance gigs, and a side business are great ways to bulk up your income.
4. Refinance Your Loan
Refinancing auto loans can lower your interest rate and overall monthly payments, especially if your credit score has increased since you opened the car loan.
5. Pay More
Try rounding up to the nearest $50 or $100 when paying on your auto loan.
6. Verify What You’re Paying For
Some auto loans come with add-ons you can remove, such as warranties.
7. Sell Your Car and Buy a Cheaper Option
Try listing your car on the marketplace, using the proceeds to pay off your car and buy a cheaper car outright.
8. Refinance with another lender.
If you’ve found a lender offering better interest rates, try refinancing your loan to lower your monthly payment.
9. Make a Lump Sum Payment Toward Your Principal
If you can liquidate some assets and quickly come up with a chunk of money to put toward your car, you’ll lower your overall debt and pay off your car loan quicker.
10. Purchase a Used Car
If you want to avoid car payments altogether, buy a used car. Sites such as Auto Trader and Facebook Marketplace are excellent places to find quality used cars.