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How to lower your car payment

Whether you are shopping or already have a loan, here are seven legitimate ways to shrink your monthly car payment.

1. Put more money down

A larger down payment reduces the amount you finance, which lowers both your monthly payment and total interest. It also protects you from owing more than the car is worth.

2. Improve your rate

Shopping multiple lenders and improving your credit before you apply can get you a lower APR. Even one or two points saves real money over the loan.

3. Choose the right term

A longer term lowers the monthly payment but raises total interest. Pick the shortest term whose payment you can comfortably afford — the calculator makes the trade-off obvious.

4. Trade in or sell your current car

Applying a trade-in or private-sale proceeds to the purchase lowers the principal directly.

5. Skip the add-ons

Extended warranties, paint protection and other dealer add-ons get financed too — meaning you pay interest on them. Decline what you do not need.

6. Refinance an existing loan

If rates have dropped or your credit improved, refinancing can lower your payment or shorten your term.

7. Buy a less expensive car

The simplest lever of all: a lower price means a lower payment. See how much car you can afford before you shop.

General information, not financial advice.