How to Save Money on Your Car Payments
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5 Ways to Save Money on Car Payments
When your car runs into issues more times than you can count, you know it makes more sense to buy a new one than to spend more on repairs. Buying a car requires careful planning — especially in the financial aspect. In this case, an auto loan can be a practical way to finance your new vehicle.
Careful planning can help you get the best deal on your auto financing. It’s worth noting that once you drive your new car off the dealership, its value depreciates by 10% — but your debt will remain the same. As you continue to use it, it depreciates even more.
Ideally, you should pay for the financing earlier so you can save on interest. However, if you don’t have the resources to do that, Goodwill Car Donations shares some alternatives that could save you money on your car payments.
- Build a positive credit history.
Be proactive. It’s common knowledge that the higher your credit score, the greater your chances of getting better financing terms for your new car. For this reason, working on your credit history before applying for an auto loan makes sense. Some of the best ways to improve your credit score include:
- Reviewing credit reports occasionally and reporting any mistakes immediately
- Paying bills on time
- Limiting your credit utilization to 30%
- Diversifying your credit portfolio
- Avoid getting the “extras.”
When buying a new car, watch out for the “extras” that dealers usually offer. These extras could be extended warranties or car insurance that cost more in dealerships than third-party providers.
- Refinance your auto loan.
People often get stuck with a high-interest car loan because of their credit situation at the time of the loan application. However, if your situation has improved, you may qualify for another loan with a lower interest rate, so you can refinance your existing debt and get lower monthly payments. However, if you choose this route, ensure the term length is the same. If it’s longer, find another lender because you’ll pay more in the total interest.
- Shop for car financing options.
Dealerships usually offer in-house financing to their customers. While it can be tempting to go with their offer to avoid all the hassle, you should know that they are just middlemen. And middlemen always get paid for their troubles — usually by their borrowers.
To avoid the surcharge, try looking for financing outside the dealership. If you have good credit, many financing companies will offer low-interest rates and flexible terms on their car loans. The more offer you get, the more chances you have at picking the best deal and saving money on car payments.
- Trade in your old car.
If your old car is still in good condition, and you want to buy a new car for a change, you may save on your monthly payments by going for a trade-in. Although you can always opt to sell your old car, trade-ins save you time and the hassle of marketing your old car to prospective buyers.
The Best Way to Get Rid of an Unwanted Car
If your garage doesn’t have enough space for a new car, perhaps it’s time to get rid of your old sedan, which you don’t intend to use anymore. Consider donating it to us at Goodwill Car Donations. It’s the best way to dispose of an unwanted vehicle while extending a helping hand to the disadvantaged individuals in your community.
We’ll have your car auctioned off, with the proceeds used to support the life-enhancement and community-building programs of the Goodwill organizations serving your local area. These IRS-certified 501(c)(3) nonprofits cater to Americans who are suffering from disabilities, lack of essential skills, job experience, or education, and other limiting personal circumstances, such as being welfare-dependent or having prison records.
Your local Goodwill organizations use the funding they get from us to provide their beneficiaries with job and skills training, employment opportunities, scholarships, livelihood assistance, disability benefits, family support, educational services, financial assistance, and many other essential support services.
Making a Goodwill car donation is super easy. You’ll be taking the easiest route to dispose of your unwanted auto while getting your fair share of rewards at the same time. We’ll pick up and tow your vehicle for free wherever you are located in the United States.
Your donation will also entitle you to claim the maximum tax deduction in the next tax season.
Moreover, your act of charity will bring you an immense sense of satisfaction, knowing that you’ll be contributing to the growth and development of your community by empowering your needy fellow residents through work and learning.
You can donate not just a car, pick-up truck, or motorcycle but also a golf cart, unused farm tractor, and any other type of vehicle, including a boat. We’ll welcome whatever type of vehicle you donate regardless of its age or condition.
Interested to know more? Find more information about Goodwill Car Donations, including our quick and easy donation process, by visiting our FAQs page. You can also give us a call at 866-233-8586 or contact us here.
Reach Out to Your Community’s Needy Folks Today!
Allow us to be your partner in charity work. Your car donation will help greatly in transforming the lives of your disadvantaged neighbors. Call Goodwill Car Donations at 866-233-8586 or fill out our secure online donation form now!