How to Get the Lowest Car Payment: Strategies For Saving Big
Shopping for your next vehicle shouldn’t be a hassle, and securing a car loan you’re comfortable with shouldn’t deter this occasion. At Crossroads Ford of Fuquay-Varina, we’ll give you some tips on how to get the lowest car payment towards your next ride. We’ll inform you of various strategies to achieve this goal, from understanding car loans to exploring alternative financing options, including specials from our dealership and Ford. Get started by contacting our helpful staff for more information.
Understanding Car Loans
Before diving into specific tactics on how to get the lowest car payment, it’s crucial to grasp the fundamentals of car loans. The interest rate you qualify for is a significant factor influencing your monthly payment. It’s determined by your credit score, loan term, and the lender’s risk assessment. A higher credit score translates to a lower interest rate, resulting in a smaller monthly payment. Conversely, a lower credit score leads to a higher interest rate, increasing your monthly burden. Even a slight increase in your credit score can translate to substantial savings over the life of the loan. Many online resources can inform you on how to improve your credit score.
What Ford Can Do For You
In addition to OEM programs, visiting your local Crossroads Ford destination also offers ways to secure the lowest car payment:
Ford Programs: With Ford programs like the Ford Recognition Program, college students, farmers, members of the military, and first responders can access rebates up to $500 when purchasing a new car.* You can secure a car loan faster with Ford Credit options such as Standard Purchase, Flex Buy, and Red Carpet Lease, each with benefits like lower monthly payments, building equity to lower the purchase price of your next Ford, and numerous mileage options.**
New Car Specials at Crossroads Ford: If you’re wondering how to get the lowest car payment, our dealership always has offers available when you want to purchase a new car and even a used car. Contact our dealers for the latest deals in house.
How To Save Money On Car Payments
There are several strategies you can employ on how to get the lowest car payment. These include:
Make a Large Down Payment: This approach reduces the amount you need to borrow, consequently impacting your monthly payment. A larger down payment can be especially beneficial if you have a lower credit score. It may offset the need for a higher interest rate, ultimately lowering your monthly payments. Use our payment calculator to determine the impact of different down payment amounts on your monthly payments and loan term.
Apply for a Long-Term Loan: Stretching out your loan term over a longer period, like 72 months, will result in a lower monthly payment compared to a shorter loan term of 36 months. However, while a longer term offers more affordable car payments, you’ll end up paying more interest over the life of the loan. Carefully compare repayment lengths to ensure you’re not sacrificing significant savings in exchange for a lower monthly payment.
Make Biweekly Payments: This strategy involves splitting your car loan payment into two smaller installments made every two weeks. This translates to 26 payments in a year instead of the standard 12. Making biweekly payments effectively increases the number of payments you make annually, accelerating the payoff of your loan and saving money on interest. Consider this option if you’re disciplined enough to make consistent biweekly payments.
Exploring Alternative Options
Beyond traditional car loans, consider these alternative financing methods to discover how to get the lowest car payment.
Refinance Your Car Loan: Refinancing involves replacing your existing car loan with a new one from a different lender. If your credit score has improved since you obtained your original loan, you might qualify for a lower interest rate. This can significantly reduce your monthly payment. However, refinancing typically involves fees, so ensure the potential savings outweigh the costs. Compare financing between various lenders to estimate how much you can save and find the best monthly payment.
Lease a Car: For those wanting to try out the latest Ford every few years, leasing one offers a lower monthly payment compared to purchasing one. However, keep in mind that you’ll ultimately return the car at the end of the lease contract.
Shop Crossroads
Getting the lowest car payment requires a multi-pronged approach. By understanding car loans, improving your credit score, strategically utilizing down payments, and comparing rates for a low car payment you’re comfortable with, you’re on your way to finding the ride of your dreams. Visit Crossroads Ford of Fuquay-Varina to get started today!
*See dealer for complete details.
**Flex Buy is unavailable in Maine, Michigan, New Hampshire, North Carolina, Ohio, Pennsylvania, Virginia and Washington, D.C. See dealer for complete details.
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