How to Lower Your Car Payments with Cambridge Centre HondaHonda News Jan 17th, 2023
How to Lower Your Car Payments with Cambridge Centre Honda
If you’re in the market for a new vehicle, or perhaps have already signed a financing agreement for your current vehicle, managing your loan can be a stressful process. However, there are smart ways to reduce your monthly payments and make the repayment process easier to manage. With our Financing team at Cambridge Centre Honda , we’ll go over your various options, such as trade-ins, financing options, making a down payment, and even re-financing potential! We’ll provide you with all of the information you need to make an informed decision, and help you once again feel confident with your automotive finances.
How Can I Lower My New Car Payments?
Explore All Financing Options
If you’re in the market for a new vehicle, there are really two options available to you when it comes to financing, aside from a straight-cash purchase. Both financing and leasing have advantages and disadvantages, so it’s crucial to understand both and select the one that best meets your needs.
- Buying a car is the most traditional form of financing. You will be required to make a down payment and then finance the remaining balance over time, typically with the help of a bank or credit union loan. You’ll make monthly payments on the loan until it is paid off.
- Leasing a car is similar to renting an apartment, except you’re renting a car instead of an apartment. You pay for the use of the vehicle, but you do not own it. Payments are typically lower than if you purchased the vehicle, and you will have the option to purchase the vehicle at the end of the lease.
If you need to apply for an auto loan, talk to our Cambridge Finance team at Cambridge Centre Honda to explore your options further.
Increase Your Down Payment, If Possible
While it’s easier said than done, making a down payment on a new vehicle can drastically reduce your monthly payments over the term of the loan. A down payment is the money you pay upfront when you buy or lease a car, so the greater your down payment, the less you’ll have to finance in total which in turn lowers your monthly payments. Focus on saving the most amount of money possible before you purchase your vehicle, and your future self will be thanking you for making a smarter financial decision.
Trade In Your Current Model
Trade-ins with Cambridge Centre Honda can be an excellent way to reduce monthly payments on a new Honda vehicle. When you trade in your old car, truck, or SUV, we’ll apply the market trade-in value to the purchase price of the new vehicle, which can significantly reduce the amount you need to finance or pay out of pocket. Here are some things to keep in mind when trading in your current vehicle:
- Be aware of the current market value: Cambridge Centre Honda will always make you a fair trade-in offer for your vehicle based on the current market value. It’s always a smart idea to be familiar with what you can expect your car to be worth in a trade-in scenario.
- Keep Your Car as Clean as Possible: While it should go without saying, a clean car in good condition is more valuable than a dirty car in worse condition. Take the best care of your car before trading it in to get the most value possible.
What if I’m Already Financing My Vehicle?
Explore Loan Refinancing Options
Individuals who currently own a vehicle and want to minimize their payments may consider refinancing. Refinancing entails securing a new loan with either a cheaper interest rate, or longer/shorter terms. Refinancing auto loans are uncommon, and not suited for all clients, however our team at Cambridge Centre Honda are always willing to explore options to help our clients feel confident in both their vehicle, and vehicle finances. Talk to our team today to learn more.
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Cambridge Centre Honda is your Kitchener, Waterloo, and Cambridge-area dealership for all things auto financing and car loan solutions. Visit our team, today, to find the best financial solution for you, and take control of your automotive finances. Visit our Cambridge finance department to get started.