It’s possible to manage your Volkswagen car payment and even lower the monthly amount to make the process more manageable. Heritage Volkswagen Catonsville outlines the best practices for lowering the payment as part of an effective budgeting plan.
Make a Higher Down Payment
A 20% down payment is ideal according to most finance experts. The more you pay upfront, the less you have to pay in monthly payments. Plus, it also lowers the loan principal amount, not to mention it makes you a more attractive candidate to lending institutions.
Aim for a Longer-Term Repayment Plan
Payment terms vary and are typically between 24 and 84 months. Longer terms allow you to make smaller payments and make the process more sustainable. However, keep in mind this also means you pay more in interest over time, so you end up paying more in the long run.
Foot Additional Payments
If you can, try to make additional payments whenever your budget allows for it. Getting ahead in this manner helps lower future payments. Depending on the terms, the payment may be applied to the vehicle’s loan principal or interest.
Similarly, you can inquire about bi-weekly payment plans; you’ll pay more frequently but in smaller and more manageable increments.
Trade in Your Vehicle
If you trade in your vehicle, its value is applied towards the new vehicle purchase. This can go towards the 20% recommended down payment, which in turn helps lower the monthly payment.
We Help Manage Your Volkswagen Car Payment in Baltimore, MD
We understand car payments are no small investment. Our finance department at Heritage Volkswagen Catonsville can help pre-qualify and qualify you for a loan and find a repayment plan in line with your budget. We can’t wait to help you!
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