How to Drive Down the Cost of an Auto Loan
Kiplinger's Personal Finance|May 2023
For starters, stand firm on how much you can afford to spend.
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How to Drive Down the Cost of an Auto Loan

RISING INTEREST RATES combined with higher prices for cars have pushed up the cost of auto loans. U.S. consumers paid an average of $46,437 for a new vehicle in January, up 4.2% from a year earlier, according to JD Power. Meanwhile, auto loan rates are averaging 6.27% for a five-year new car loan, up from 3.96% a year earlier, according to Bankrate.com. If you were to borrow, say, $40,000 and finance it at 6.27% over five years, your monthly payment would be $778.

Fortunately, there are plenty of ways to lower the expense. If you're in the market for a car and plan to finance it, consider these strategies to keep your costs manageable.

Set a target for all car expenses. Before you step foot on a dealer's lot-and start discussing the terms of a car loan-figure out how much you can afford to spend on the car. "Everyone's situation is so incredibly different and nuanced, but it shouldn't be a significant portion of your income if you can help it," says Sam Gorelick, a certified financial planner with Brunch & Budget in New York City.

この記事は Kiplinger's Personal Finance の May 2023 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Kiplinger's Personal Finance の May 2023 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

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