Ways to Save On Car Payments

Ways to Save On Car Payments

One thing that I am proud to say we don’t have is a car payment, but that glorious day didn’t come overnight! Let me tell you what I did to make not having a car payment possible.

Don’t upgrade! We own a 2000 Park Avenue that has over 230,000 miles on it, but it is mechanically sound. It does have a few bumps, dings and quirks but that just adds to it’s character. Our other vehicle is a 2001 Dodge Ram with 240,000 miles also with a few dents and dings but it is ours.

Keep your car mechanically sound by doing routine maintenance such as regular oil changes and tune ups. This will extend the life of your car and save you money in the process. As well as improve your gas mileage saving you even more when you fill up.

Pay a little extra each month towards the principal. Each time you make an extra payment the money is taken off of the principal, resulting in lower interest each month. We paid an extra $20 a month when we had car payments in order to shave a little extra off of of the principal. This resulted in shaving a few months off of our loan term.

Get the lowest possible interest rate and borrow the money from your bank. Our bank offers around two percent interest where a car dealership would charge easily charge more than that. The average for our area is around 6 percent, it isn’t a huge discount but at a little over 50% that is my kind of savings.

Lots of dealerships have special offers on their websites you just have to know where to find them. Taking the time you need to research the dealership, to test drive the car, and be sure about your purchase before you buy will help you make a decision you are happy with. Reading the contract and warranty will help you to avoid making a bad purchase thinking any problems would be fixed and find out you’re wrong.

What other tips do you have to help save money on car payments?