A car loan length can range from 36 to 72 months, depending on the lender and your credit. If you want to lower your monthly car payment, you may want to consider a longer loan term, which can reduce your monthly payment. The longer the term, the lower your monthly payment. A longer car loan can also help you save money on interest as well. Additionally, you may want to consider a low- or no- APR car loan, which can help you save money on interest as well.
Payment Information
What is your payment amount? A $1000 car payment at a 0% APR will be $9.00 per month. The amount you pay each month will depend on the interest rate and the length of your loan. If you want to lower your monthly payment, consider a longer loan term or a low- or no-APR car loan.
What is the annual percentage rate (APR)? This is the interest rate that you pay each year on your auto loan. Typically, an APR of 9% means that you pay 9% interest on all outstanding balance each year if you want to borrow $10,000 for 36 months with a typical credit score of 620 and no co-signer.
Tips to Lower Your Car Loan Payment
If you’re interested in lowering your car payment, here are a few steps to consider:
1. Compare car loan terms. A 36 month car loan will cost you about $1,000 more than a 72 month loan. The difference can be made up by paying less in interest or paying off the full amount sooner with a longer term.
2. Shop for low- or no-APR loans. If you’re looking to save money on interest, compare terms and rates online with multiple lenders to find the lowest APR possible for your needs and credit profile. A low- or no-APR loan can help you save money each month on interest as well as pay off your vehicle faster and lower your total cost of ownership over time.
3. Shop for better deals on used vehicles from private sellers rather than dealerships when buying a used car because private sellers won’t typically require any down payment (or even offer financing) when selling their cars to consumers (as opposed to dealerships who want at least some down payment).