#1: Make Bi-Weekly Payments
If you’re making one monthly payment against your car loan, try switching it into two bi-weekly payments. By doing this, you’ll actually make thirteen monthly payments over the course of the year:
52 weeks = 26 bi-weekly payments OR 12 monthly payments
12 monthly payments = 24 bi-weekly payments
#2: The “Snowball” Technique
Most people are making payments against more than just a car loan. If you manage to pay off another debt i.e. a credit card before your vehicle loan, consider funneling that extra money into that loan. This is known as the snowball technique.
#3: Use Your Tax Refund
If you get a nice chunk of change back after doing your taxes, consider putting it against your car loan. The more extra money you pump into your loan, the quicker you can pay it off.
If you had a history of late payments, or a poor credit score when you got your car loan, you may have been given a higher interest rate than you expected. But if you’ve been making timely payments on your current car loan for the past 12 months, you may be eligible for a lower interest rate. Contact us at Finance My Loan to see if we can re-finance you to save you some money!
#5: Make One Extra Payment Every Year
It might not seem like a lot, but making an extra payment once a year adds up. For example, if your car loan term length is five years with $300 monthly payments, five additional payments is an extra $1500 towards your vehicle. $300 is only $25 a month over the course of a year. Set that much aside each month to make your extra payment that much easier.
#6: Finance with the Right Lender
The most important thing you can do when applying for a car loan is to choose the right lender. Banks have a vested interest when they lend you money. After all, that’s how they make their money. They also have more stringent rules when it comes to financing.
The benefit of a third-party lender, like My Ride, is that we don’t have to operate with a bank’s strict rules. If we have to, we’ll use our own money to finance you. This means we have an easier time approving people, even if they have less than desirable credit.
Note: most third party car loan site DO NOT do this. Most simply act as a go between with the banks. We’re very different. So if you’ve been denied by other car loan sites before, give us a try. There’s a good chance we can approve you even if they couldn’t.
#7: Choose the Right Vehicle
By “right,” we mean a vehicle that makes sense with your budget. But here’s the encouraging news: there so many more options that you’re probably expecting!
At My Ride, we have 10,000 vehicles and 20 brands to choose from (one of the biggest selections in Canada). What’s better, we have a staff of personal shoppers whose sole job is find a list of the best possible vehicles that fit your needs and financial situation.
We do all the work for you!
#8: Never Skip a Payment
While it may be tempting, you should never skip a payment. You’ll eventually have to make that money up which will only contribute to the amount of interest you’ll have to pay. It will also look bad on your credit report the next time you need to finance a vehicle.
Pay Less Interest on Your Vehicle Loan with My Ride
People with bad credit usually spend the most money in interest because banks only approve them at the highest rates available. That’s because banks consider poor credit customers “high risk.” And the problem is, people with bad credit think they have no other options so they end up just settling for the loan the banks offer them.
We can lower your monthly payments and reduce the amount of interest you’ll pay on your car loan. How? It’s simple. We use our own money. We’re not beholden to the bank’s rules. In fact, we specialize with “high-risk” clients that have little or no credit. The only difference is, we don’t see our customers as high risk. We see an opportunity for them to rebuild their credit, in a car they love, with payments they can afford.