- 1). Increase a low credit score. Several factors influence the payment on a new car: the sale price and the interest rate. To get the best rate on the car, order a copy of your credit report and examine your credit score. Take steps to improve your credit such as paying down debt, paying bills on time and limiting credit inquiries.
- 2). Save money for a down payment. Auto lenders don't require down payments. However, if you want to get a lower payment on a new car, give the dealership a 10 or 20 percent down payment. This reduces the amount financed, which reduces your payments.
- 3). Apply with a co-signer. People with no credit history or bad credit rarely obtain a low rate on a new car loan. If possible, find someone with a good credit history and ask her to co-sign the auto loan. Co-signers can help you acquire a lower rate, which can decrease your monthly payments.
- 4). Shop around. Some car buyers accept dealership financing. However, dealership lenders tend to charge higher rates. Instead, contact your local bank or credit union and apply for an auto loan. Oftentimes, these lenders offer lower rates and lower payments.
- 5). Extend the car loan term. Choosing a three or four year auto loan lets you pay off the loan sooner. Unfortunately, these loans require higher payments. To get a lower payment, pick a five or six year term.
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