When you are checking out used cars, one of the biggest advantages is the cost. These will almost always be less than the same make and model that is new. When you are paying less for a vehicle, you can pay it off faster. However, there are a few tips to make it easier to get the loan paid off so that you can eliminate your monthly payments.
Put More Money Down
Even if you put an extra $500 to $1,000 down, this is less money you have to pay back with interest. This allows you to pay your vehicle off faster and it can also save you money overall. Consider your timeline for paying off the vehicle and do the math to determine the down payment amount that fits into your plans.
Pay More With Every Payment
Add to your payment every month to make each payment larger. You can choose any amount that you can afford during that given month. For example, add an extra $50 to your payment in August and September, but when the holidays come up and money is tight, plan to pay an extra $25. Every dollar counts and works to get the loan satisfied faster.
Make an Extra Payment Every Four Months
This is relatively easy and most people are able to afford this. This cuts off three months of payment per year. If you have a two-year loan, you will pay your vehicle off in 18 months instead of the full 24. Simply divide your monthly payment by four, put this much aside and once four months is up, make the extra payment.
You can use all of these tips together so that your loan is paid off before you know it. Just talk to the dealership and see if they have any rules about paying off a loan before it is set to be complete.
With the variety of vehicles manufactured, it can be difficult to decide which car is best for you. It can be even more trying when you’re looking at used cars that already have significant mileage on them. When you’re shopping around the used car lot, there are quite a few things to consider. Here are three that you should definitely give some thought to.
1. Excessive Use
This is something you’ll check almost immediately, but the number of kilometers isn’t the only thing that’s important. When a newer car has already done a lot of traveling, that means it was driven far and frequently right after being purchased. On the other hand, an older car with the same odometer reading might not have been pressed as hard by its previous owner. All of this should factor in to the questions you ask the dealer regarding the vehicle’s past use and what repairs have since been done.
2. Recurring Problems
When you get a history report of a car’s maintenance, some of the information will shed light on issues the vehicle had in the past. Some people turn in their used cars because they keep having the same problems and continually have to pay for repairs. That could signify an issue with the car, but it might have more to do with the previous driver. Make sure to clarify these points.
3. Safety Standards
Depending on the year a car was made, it might not have the same safety measures that you’re used to. Most cars won’t be so old as to be unsafe, but it’s worth asking the car dealer for his or her thoughts on safety issues. Used cars still require owners to make a big investment, so it’s important that you take everything into account before making a purchase. As long as you know what to look for and which questions to ask, you should end up with a good vehicle.