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How to lower your car payment?

Bought and financed a car and now wondering how to lower your car payment?
There are only two ways to lower your car payment:

  • Refinance your car, you'll get a lower payment because of a lower APR or longer term
  • Sell your car and buy a lower priced one


The problem is: even if you make an extra payment above and beyond of what your actual monthly payment is, the auto loan company will not reduce your monthly payments. Instead, the auto loan company will just shorten the term of the loan.

Your auto loan company most likely already sold your loan to another institutional investor. When selling your loan, your auto loan company basically promised certain cash flows (i.e. your monthly payments) to the investor. If your auto loan company reduced your monthly payment, they'd practically break their promise.

Refinancing is really your only and best way to go. You'll not only reduce your payment, you'll also reduce your total interest charges. Hence, you will be saving a lot of money of the entire term of the loan. We recommend you take a look at our auto loan refinance calculator to calculate how much you could save.


Haven't explored refinancing yet?
WithClutch.com is a fully digital platform that lets car owners like you do so from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.

Follow three simple steps to refinance your auto loan, get approved in seconds and save thousands in minutes.

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WithClutch, LLC

2120 E El Parque Dr

Tempe, AZ 85282