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How Can I Lower My Car Payment?

Finance | 05/09/2022 22:00

Times are hard right now for many people, and the ballooning inflation we are seeing doesn’t seem to be letting up. It leaves many people to wonder, “how can I save some money” – and specifically, “how can I lower my car payment?”


If you are like most people, you are probably overpaying on your car payment every month. In fact, by the end of 2021 the average car payment was over $640 per month. That’s over $7500 per year, not including insurance, gas, maintenance, etc. Long story short: owning a car is very expensive, especially in 2022.


But fear not – today we are talking about how car payments work and how you can get lower monthly car payments.


Here are our top tips to help get a lower car payment.


How are car payments calculated?

In order to determine a car payment, you will need to know the following information:

  • The cost of the car, also called the principal

  • The term of the loan 

  • The interest rate

  • Sales tax

  • Additional fees


You can go online and find a car payment calculator that will help do the heavy lifting for you. For example, say you are buying a $30,000 car with a $5,000 down payment. You have a 5 year loan at 4.5% APR with 7% sales tax and $300 in fees. 


Total Loan Amount: $27,400 ($25,000 cost of car + $2,100 tax + $300 fees)

Total Cost of Interest Over 5 years: $3,2429.12

Total Cost of Car: $35,649.12

Monthly Payments: $510.82


The monthly payments are divided between the principal balance and the interest on the loan. Car loans are front-loaded amortized loans, which means that towards the beginning of the loan, more of the payment goes towards the interest on the loan. Towards the end of the loan, more of the payment goes towards the principal. A car payment amortization schedule can help you keep track of how your payments are divided. 


A car payment amortization breakdown for our above example shows how car payments are divided between principal and interest:

Year 1

Beginning Balance: $27,400.00

Interest: $1,130.73

Principal: $4,999.11

Ending Balance: $22,400.91


Year 2

Beginning Balance: $22,400.91

Interest: $901.07

Principal: $5,228.77

Ending Balance: $17,172.15


Year 3

Beginning Balance: $17,172.15

Interest: $660.86

Principal: $5,468.98

Ending Balance: $11,703.19


Year 4

Beginning Balance: $11,703.19

Interest: $409.62

Principal: $5,720.22

Ending Balance: $5,982.99


Year 5

Beginning Balance: $5,982.99

Interest: $146.83

Principal: $5,983.01

Ending Balance: $0.00


Early on in your loan, you are paying more in interest, and later on you are paying more in principal. But the monthly car payments will stay the same every month.


What is a good APR for a car loan?

Your monthly car payments are primarily dictated by your starting principal, car loan APR, and term of repayment. While the starting principal and repayment term are up to you, you will need to shop around for the best car loan APRs. The car loan APR you are offered will be based on the following:

  • Prevailing market rates

  • Your credit score

  • Your debt-to-income ratio 

  • Your loan term

  • Is it a new car or used car (used car loan rates tend to be higher than new car rates)


The rate you are offered depends a great deal on your credit score. The higher your credit score is, the lower the car loan APR. Credit scores are broken down into the following categories:

  • Exceptional (Super Prime): 800-850

  • Very good (Prime): 740-799

  • Good (Near Prime): 670-739

  • Fair (Subprime): 580-669

  • Very poor (Deep Subprime): 300-579


In the last quarter of 2021, the average car loan APRs of each category were as follows:

  • Exceptional (Super Prime): 2.47%

  • Very good (Prime): 3.51%

  • Good (Near Prime): 6.07%

  • Fair (Subprime): 9.41%

  • Very poor (Deep Subprime): 12.53%


The interest rates for those with very poor credit were about five times the interest rate for those with exceptional credit. And that can add up to a lot of money over the length of your loan.


How to get a lower monthly car payment before you buy

To avoid having high monthly payments from the beginning, you want to do your research ahead of time. Follow our tips below to stop high monthly car payments before they even start. 


Make a down payment

Making a down payment will reduce the total amount of your loan, your principal. The larger the down payment, the lower your monthly payments will be. Aim to pay at least 20% of the total cost as a down payment. This will also reduce the chance of your loan becoming underwater (when you owe more on your car than your car is worth).


Shop and compare

Shop around for the best deals on the car you want. The lower the sticker price is on your new car, the lower your monthly payments will be. Be sure to look at Kelley Blue Book and Edmunds before you even step into a dealership so that you know how much money the car you are interested in is actually worth. It’s easy to get talked into a bad deal by a smooth-talking salesman, so do your homework beforehand.


Choose a longer repayment term

Selecting a longer repayment term from the beginning will result in lower monthly car payments. But remember: the longer your repayment term, the longer you will be paying interest. This can add up to a lot of money by the end of your loan.


Make sure your credit is in good shape

To ensure you get the best car loan APR offers in the first place, make sure your credit score is in good shape from the beginning. 

  • Request a copy of your credit report and review thoroughly for errors or mistakes.

  • Commit to making consistent, on-time and full payments to increase your score.

  • Pay down any large debts that may be skewing your credit utilization ratio.

  • Avoid opening any new accounts or triggering any hard inquiries in the year leading up to your financing. 


Working on your credit score can save you a lot of money in the long run and is something you should take very seriously. Bumping your score up can result in hundreds if not thousands of dollars in savings.


How to get a lower monthly car payment after you buy

If you are overpaying on your monthly car payments, here are our top tips to lower your payment.


Refinance your car loan to a lower APR

Refinancing a car loan is when you pay off your existing loan with a new loan. If you can secure a lower APR, this can save you a lot of money. You may find a lower car loan APR if:

  • The market rates have decreased

  • Your credit score has improved

  • Your debt to income ratio has improved


Average market rates have dropped significantly in the past two years, so chances are you will find a lower car loan APR, even if your credit score hasn’t improved much.


Refinance your car loan to a longer term

If you are currently on a shorter term loan (say 36 months), refinancing your car loan to a longer term can drastically lower your monthly car payments. 


Talk to your lender

If you are struggling to keep up with monthly payments, try talking to your current lender about your situation. If your credit score has decreased or your current loan’s prepayment penalties make refinancing your car impossible, talking to your lender may be your best option. They may be able to put you on a more manageable payment plan or suggest other options to you. The Consumer Financial Protection Bureau suggests asking your lender how any of these options might affect your credit.


Add a co-borrower

If your credit score isn't better than what it was when you originally financed your loan, adding a co-borrower may be a good option for you. When you refinance a car loan, you can add a co-borrower to your loan and possibly reduce your interest rate and secure better terms. If they have good credit, they will be eligible for a better interest rate. 


Those are our top tips for getting a lower monthly car payment.


Be sure to understand how car payments are calculated before you commit to any type of financing. It’s also important to do your homework to make sure that you are getting a good and manageable financing deal in the first place. But if you already have a less than ideal car loan situation, refinancing your car loan may be your best option.

At Auto Approve, we specialize in car loan refinancing and know how much money it can save you every month. We have relationships with lenders across the country and can help you start saving money today. So don’t wait – find out just how much money you could be saving with lower monthly car payments. contact us today to get your free quote!

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All-Wheel Drive vs. 4-Wheel Drive: What You Need to Know

All-wheel drive. Four-wheel drive. We’ve all heard the terms, but what do they mean? And, which do you really need, if either?Whether you’re shopping for a new vehicle, moving to a new area with rougher driving conditions, or just curious about your car’s capabilities, this guide is for you. The truth is, these terms can be kind of confusing, especially since many car manufacturers have their own unique names for their 4-wheel or all-wheel drive systems. Understanding the basics can help you choose the right vehicle for your driving situation or make better use of your vehicle’s existing systems.In this blog, you’ll find the answers to some of the most frequently asked questions about all-wheel drive (AWD) and 4-wheel drive (4WD), like:Why is having AWD or 4WD important?What is a powertrain? What is all-wheel drive?What is 4-wheel drive?Which is better, AWD or 4WD?Let’s take a closer look.All-Wheel Drive vs. 4-Wheel Drive: Everything You Need to KnowEssentially speaking, vehicles move forward using traction. Two-wheel, all-wheel, and 4-wheel drive are all systems for determining how much power is going to which axle on a vehicle. With two-wheel drive, a vehicle only ever sends power to one axle – either the front or rear. If that powered axle loses traction, the vehicle will have a hard time steering and moving forward.With all-wheel and 4-wheel drive, there are ways to send power to the other axle. The difference between the two is about how and when that power is distributed.Why is having AWD or 4WD important?It isn’t, necessarily, depending on your driving situation!If you’re someone who mostly drives in a city, in the suburbs, or on highways, and lives somewhere inclement weather isn’t all that common, you may never need either AWD or 4WD.Most of the time, a two-wheel drive set-up works perfectly fine – if you’re driving on a clear, even road, you don’t need to worry about four-wheel or all-wheel drive. It’s when things get uneven or slippery that you need to think about the different set-ups. Think of it like walking – most of the time, you just walk forward on your two feet and that’s perfectly great. It’s only if you, say, got stuck in the mud or slipped on ice or needed to climb that you really need to use your arms and hands to help you along. But if those situations arise, having the ability to call in extra power sure makes a big difference.That means, if you’re someone who needs to drive off-road, haul heavy loads, or is regularly facing snowy and icy conditions, AWD and 4WD are more likely to come in handy.On the road or off-roading, choose Auto Approve for your auto loan refinance Auto Approve helps drivers like you save money on their monthly car payments. Discover whether you’re eligible for a lower monthly payment or better interest rate with a free, no-commitment quote today.Put more money back in your pocket with a free quote from Auto Approve.What is a powertrain? To understand the difference between these two kinds of drive systems, we need to look at how vehicles work more generally.The powertrain is the assembly of pieces that work together to put a vehicle in motion. It includes:the engine, which creates powerthe transmission, which uses gear sets to translate between engine speed and desired road speedthe drive shaft, which transmits power to the differentialthe differential, which allows wheels to spin at different rates when turning or in case one wheel loses tractionand the axle shaft, which sends power from the differential to the wheelsIn a 2WD vehicle, there’s one axle receiving power. In a 4WD vehicle, there’s a front differential and a rear differential and you can choose different settings depending on driving conditions. In an AWD vehicle, there’s typically a center differential, and power is sent to different wheels automatically. While the specifics vary from model to model, this is usually done based either on simple physics (as in a viscous or helical center differential where a physical change caused by wheel slip makes other parts of the powertrain react) or by a computer based on set parameters (called an electronic limited slip differential, which is becoming more and more common). There are also systems in between that defy categorization, like those that send power to one axle or the other but never both at the same time – but that’s truly getting into the weeds.What is all-wheel drive? (AWD)An all-wheel drive vehicle has a center differential.All-wheel drive is a system used to automatically redistribute torque based on traction. That is, it has the ability to send power to any wheel, and determines which wheels to send power to based on certain set factors. How exactly it determines where to send power and the system used to do so varies by maker. Some AWDs are full-time (meaning they’re always sensing whether or not to change where power is being sent to) while others are part-time (meaning you can activate AWD capabilities, and otherwise have a 2WD vehicle).Broadly, AWD is good for people who might encounter slippery road conditions, but not so much for off-roading and hauling.What is 4-wheel drive (4WD)?A 4-wheel drive vehicle has two differentials, one for the front and one for the rear. Typically, when 4WD is activated, power is sent consistently to all 4 wheels, rather than the variable power of AWD, and the driveshaft locks. 4WD is usually a setting that can be turned on and off, and really shouldn’t be turned on when driving on a standard road. The extra friction can damage the vehicle’s tires and powertrain. Rather, 4WD should be engaged when driving on rough terrain, like driving through mud or snow, for climbing uneven and steep surfaces, or for pulling heavy objects.In general, 4WD is preferred by people who spend a lot of time in the woods, driving unpaved roads, and taking on heavy duty tasks. It’s most common for trucks and SUVs designed for off-roading to have a 4WD drive option.Which is better, AWD or 4WD?Now that you understand a bit about how AWD and 4WD drive work and what they’re used for, you can decide which makes more sense for you.Neither all-wheel drive nor 4-wheel drive is empirically better – they’re two different systems offering different pros and cons.The short version is, if you’re looking for a vehicle that can handle a little extra mud, snow, ice, or heavy rainfall, but largely planning to stay on standard roads, AWD may well be the right choice for you. AWD can usually offer better road safety in inclement weather than a standard 2WD set-up, helping you stay out of road trouble.That said, if you expect to find yourself in deep snow, significant mud, or heading off the beaten path, 4WD might be for you. 4WD is generally the best option for anyone planning to do heavy duty work with their vehicle or regularly drive through unpaved areas.And one last thing to consider. These days, many different manufacturers offer their own patented versions of these features, each with a unique powertrain setup (and, in many cases, unique algorithm). If you’re thinking about purchasing a new vehicle, make sure you take time to look into the features being offered and how they work to make the right choice for your driving life.And that’s everything you need to know about all wheel drive vs. 4 wheel drive.If you already have a vehicle offering one of these features, you should be able to use and understand them better now.If you’re exploring a new vehicle, the choice is yours. Which do you think makes the most sense for you? And if you’re thinking about refinancing, get your free quote from Auto Approve today to discover how much you could save. Auto Approve makes finding the bets deal for you easy – and does the paperwork for you.Get your free quote now.

What’s In The Trunk: 10 Car Emergency Kit Essentials

What should you have in your car emergency kit?Whether you’ve just bought your first car or are simply taking a moment to reassess the essentials you keep in your vehicle, there are a few things you should have in your car for emergencies.With this list, you can make sure you’re prepared for many of the most common roadside issues, no matter whether you’re driving in wintry conditions or summer heat, an electric or gas vehicle, in the city or off the beaten path.Let’s take a look.10 Things To Put On Your Car Emergency Kit ListIt’s important to have an emergency kit for your home and for your vehicle, especially as natural disasters become more frequent and move to new areas. Here are some top recommendations for your emergency kit for your car. Take a peek and decide which are right for you, your vehicle, and the places you drive.1. Flashlight & FlaresOne of the most important things to have in your trunk is something you can use both to signal other drivers that you’re broken down or need roadside assistance and to light your way should anything happen after dark. While reflective gear is great (and also recommended!), something that reliably casts a light is a must for your vehicle. Be sure to check the batteries on your flashlight regularly and keep extras around just in case.2. Reflective Triangle & GearBeing able to see is important – and so is being seen. A flare or a flashlight is essential for illumination, but reflective clothes and a reflective triangle are equally essential. The clothing makes you more visible if you need to navigate around a broken down vehicle in an emergency at night and can protect you if, worst case scenario, you need to walk to safety along a poorly lit road without proper sidewalks.While flares and reflective triangles serve similar purposes, you may want to consider having both. Flares are generally designed to be long-lasting and robust enough to stay lit even in rain and high winds and offer increased visibility, but a reflective triangle can give you extra reassurance that you’ll be seen no matter what should the flare, for example, get soaked to the point where it can’t be lit.3. ProvisionsOne of the best things to keep in your car in case of emergency is water. This is especially true if you’re driving in the summer or somewhere hot, but really should be part of every emergency pack. Another essential to carry in your trunk kit is shelf stable snacks or ready-to-eat meals. You want something pretty calorie-dense and filling that will last in your trunk for quite some time. People who take emergency kit packing seriously – like those whose driving regularly takes them to more remote areas – will even buy what’s called MREs. These are military-style ration packs that stay good for several years and include everything you need to eat a full meal without any additional supplies. If you think you could end up somewhere far enough from emergency services that it might be necessary, MREs and water purification tablets can be a real lifesaver.4. Jumper CablesWhether you primarily drive out in the country or in the middle of a city, jumper cables are a great choice for an emergency kit. These cables can be used to jumpstart a weak or dead battery, helping you get your vehicle running again – at least long enough to get to a service station. Just make sure you know how to use them safely!Need a jumpstart for your finances?Many people are overpaying on their auto loan. Save on your car payment or find a better rate with Auto Approve. Get your free quote today.5. Tire Changing Kit, Repair Kit, & SpareA dead battery is one common reason for breakdowns. Tire issues are another. It’s always wise to keep the tools necessary to change a tire and a fully inflated spare tire in your vehicle. In fact, your vehicle should have come with them – but if it didn’t, you’ll definitely want to pick them up. You’ll need a jack, a lug wrench, a spare tire, and your vehicle owner’s manual. If you want to go the extra mile, there are tire repair kits available that can help you fix minor tire issues, like sealing small holes. However, these repairs are only temporary – you’ll still need to replace the tire eventually.If you’re handy, you may also want to keep a small array of useful items like duct tape, zip ties, or tools for minor vehicle repairs on hand – but only if you have the know-how to use them. With any additional tools you add to your kit, you’ll want to make sure they’re properly stowed such that they can’t come flying into the main cabin of the car in an accident. This is less of a problem in cars with traditional, separate trunks, but loose items can become dangerous in hatchbacks and SUVs that don’t have a solid divider.6. Well-Secured Fire ExtinguisherSpeaking of items that can be a huge help, but only if they’re properly stored! A fire extinguisher can’t solve every car fire, they’re not designed to fight massive fires, but can make a big difference should you end up in a situation that calls for one. Most experts recommend a standard 2.5-5 lb. ABC fire extinguisher, though some argue for Purple K extinguishers for car use. Do your own research and make a call about what makes sense for you. Just know that whichever you choose, it should be installed in a bracket that keeps the extinguisher from rolling around.7. First Aid KitA first aid kit is one of the absolute essentials for any emergency kit. It’s something that can both help you and your passengers out in case of any minor injuries while in the car, but can also come in handy separate and apart from time spent in the car. Having the ability to triage wounds in a pinch can help you help others in need and handle emergencies of your own, no matter where the road takes you. As with provisions, if you’re someone who spends a lot of time far from emergency services – or someone who likes to hike or camp – you can step up to a more serious trauma kit like the Individual First Aid Kits (IFAKs) used by some emergency workers. While a standard first aid kit includes things for treating small cuts and burns, IFAKs might include things like a splint, packed gauze, additional burn treatment supplies, and an emergency blanket for hypothermia to triage more serious injuries.8. Map, Compass, & Portable Phone ChargerWhen putting together an emergency kit for a vehicle, most of the focus is usually on handling breakdowns, accidents, and injuries, but sometimes you need a little help with the simpler things – like navigating in an area without cell service. It’s common today to rely on smartphones for directions, but there are still plenty of places where, depending on your carrier, the signal might be too weak to be sure you’re getting the information you need. If you’re worried you might be veering off track, a physical map can be a huge help.On a similar note, we rely on our phones for so much – having a portable charger is never a bad idea. Maybe you usually charge by plugging into your car, but if that fails for any reason (or your car, say, needs to be towed), making sure your phone has a full battery is a must.9. Overnight BagAnother item that’s simply a good idea to have in your vehicle just in case is an overnight bag – a change of clothes, pajamas, essentials like a toothbrush, hairbrush, and deodorant, and a small amount of cash. This is another example of something that’s good in many different situations, not just in the case of car trouble. Maybe you’ve had a drink and don’t feel safe to drive. Maybe your house loses power or is put under an evacuation notice while you’re not at home. Or maybe your car does break down far enough from home that you need to get a hotel for the night. In any of these situations, you’ll be glad to have emergency supplies in your car to help you feel clean and comfortable, wherever you end up staying.10. Inclement Weather SuppliesLast but certainly not least, this is possibly the widest category but perhaps the most important. Depending on where you are and the time of year, what you need to keep on hand can vary drastically, but it is always a good idea to have weather-appropriate emergency supplies in your car in case you have a breakdown and need to survive extreme weather for a time. Seasonal items to think about might include:Sand or salt for roadsIce scraperBlanketHand-warmersSpare winter clothesRainproof poncho or other rain clothesRain boots or winter bootsSunscreenWide-brimmed hatSunglassesLoose clothesElectrolyte drinksAnd Those Are 10 Useful Things To Have In An Emergency Kit For The CarOf course, there may be other essential items that make sense for you and your family, and not all of these ideas make sense for every driver. If you’re in the backwoods of Maine in February, you’ll need different equipment than someone driving around the arid parts of Arizona in August. But with these items, you’ll be well on your way to being and staying prepared for whatever comes your way. Need a little extra cash to put your ideal emergency kit together? Put money back in your pocket by refinancing your vehicle loan with Auto Approve. It’s easy to get a free quote online and discover how much you can save with a better rate or a lower monthly payment (or both!). Get your free quote now.

Inflation Getting You Down? 8 Simple Ways to Save Money in 2025

As costs rise around the world, many people are looking for easy ways to save money in 2025. Fortunately, there are tons of relatively easy cost-saving actions you can take to make a difference right away in your monthly budget. If inflation has you tightening your belt, try these 8 simple ideas for saving money this year. 8 Creative Ways to Save Money This YearWhile not all of these ideas will work for everyone, you should be able to find something in this list to help you reduce costs, from taking steps to avoid impulse buys to finding ways to save on your auto loan.This content is provided for informational purposes only, and should not be construed as financial advice.1. Make plans and stick to themOne of the best things you can do to spend less is to keep a closer eye on your spending. Taking a look at what you’re spending money on can help you decide what’s worth it to you and what’s not. Once you know where you want to spend and where you want to save, planning ahead is key to avoid spending more than you want to.For example, planning your meals for the week and making a grocery list of just what you need can help you reduce food waste and spend less on impulse buys. You can also set a budget for any shopping adventure or outing. Clothes in particular are one of the most common impulse buys, and many garments end up in landfills each year. Giving yourself a budget and putting back any item you’re on the fence about can help you spend less and avoid contributing to the excess of clothes.All this doesn’t mean no more fun little treats, it just means getting more creative with how you spend your splurge budget. In fact, it’s good to set some money aside for fun things, it makes it easier to stick to your plans. One simple way to do this is to take out the amount you set aside for splurging in cash – that way you can track your spending. Plus, sometimes finding ways to milk every penny for something delightful can help you find less expensive things that still make you happy, like a favorite candy or drink.2. Become a coupon whizDiscounts are out there to be had – if you want to get the most out of your money, one effective way to do that is to become more savvy about sales and discounts. While some coupon clipping can be onerous, there are many ways to save money on autopilot. Two top ways to do this are by adding a plug-in to your browser, like the Capital One shopping plug-in or Honey. These browser add-ons automatically check for coupon codes when you check out online. You can and should also join free loyalty programs anywhere you shop regularly that offers them. Many grocery store chains and pharmacies have programs you can join for free that qualify you for tons of store discounts – well worth the small price of carrying a scannable tag or entering your phone number.You can also find ways to save manually by keeping track of sales and coupons. While tons of emails and mailers can get annoying, they can help you save money by catching things you want or need when they’re on sale and helping you gather discount codes and coupons.3. Go where the deals areWant to save money? Don’t be afraid to price compare and actively seek out good deals!While people used to paying full price might feel awkward at first using services like Groupon and Good to Go, you can get great deals using them to purchase entertainment, services, and food – and discover new businesses you might love! For businesses, putting something up on Groupon is a marketing technique to help them reach wider audiences, and Good to Go helps restaurants and food retailers waste less food, so there’s nothing wrong with using them. You can also focus on visiting your favorite places when they have deals, whether that means getting cheaper movie tickets by going on certain weeknights (Regal, for example, offers reduced ticket prices on Tuesdays in some locations and for Regal members), getting a better deal on drinks at your favorite bar by going at happy hour, or visiting a local restaurant that has a special on.Going where the deal is can also mean joining a bulk retailer like Costco – stores like these often have better prices, even on the same products, than you’d find at a nearby grocery store.Take your auto loan where the deal is and save money.Another way to save money may be to change loan providers. Find out if you can lower your monthly car payment or get a better rate with Auto Approve.Get your free quote today.4. Switch providersSpeaking of changing providers! Cable, internet, and phone companies tend to inch prices up slowly over time until, eventually, you end up paying not just more than the promotional price you might have started with, but more than market rate. Switching providers can often help you get a better deal. Today, many of the more affordable phone providers are just as good as the big brand name options – do your research before making any major changes, but companies like Consumer Cellular and Mint Mobile may be a good choice to help you save.As more companies have moved to a service-based model where they take a monthly subscription fee that tends to creep upward, this applies to more bills – you may be able to save at the gym, on software, and elsewhere by switching to a competitor. Plus, sometimes initiating cancellation with your current provider may prompt them to offer you a better promotional price to keep you on as a customer, meaning you can even save money without making a change.You can also save on these same services by changing plans, like reducing your cable package or switching to an ad-based version of some of your less-used streaming platforms.5. Lower your transportation costsFor many of us, transportation eats up a big part of our monthly budget, and can feel unavoidable. In many parts of the world, a car is necessary for day-to-day activities like going to work and grocery shopping. While you might not be able to get rid of your vehicle, you can still find ways to save. The most common suggestions you’ll hear are to carpool and make use of public transit when available, but what if that’s not practical?Well, first you should audit your vehicle costs and figure out where the money is going. Ask yourself – could you avoid paying tolls by taking the scenic route occasionally or by grouping errands together? Could you share rides with friends by making errands social? Everyone needs to go to the grocery store, what if sometimes you did it with a friend, family member, or neighbor, and traded off the driving?You also may be able to increase your fuel efficiency. Take a peek at this guide to lowering your fuel costs for more on that.And, of course, you may be paying too much on your auto loan. If you want to lower your monthly payment or get a better rate, consider refinancing your vehicle. You can get a free, no-commitment quote right now.6. Get rid of unnecessary subscriptionsAnother way to save money? Use your bank or credit card’s online portal – or tools like Rocket Money, OneMain Trim, or Intuit’s line of products – to find forgotten subscriptions and identify recurring charges. As more and more companies have moved to subscription-based models, it gets harder to keep track of who’s raising prices or automatically renewing.Get rid of anything you’re not using or don’t remember signing up for, then decide if there are any other subscriptions you no longer need or simply can live without.$19.99 here and $27.99 there might not sound like a lot, but together these little charges can add up to hundreds of dollars a month to services you may not even be using.7. Use the 30-day ruleThinking about making a purchase that’s a want, not a need? Use the 30-day rule. The rule is simple, and just what it sounds like: if you’re thinking of making a large or impulse purchase, wait 30 days. Then, see if you still want it. This can help you avoid splurges and impulse buys that might not get used or spark joy long term.Easy, right?8. Get creative with gifts, meals, and activitiesLast but certainly not least, remember that sometimes time is better than money. If you can’t afford a big gift or want to save on a date night, putting time into planning something or making something thoughtful within your budget can be just as delightful as a shiny thing or pre-fixe dinner. Nights out, gifts, and events can all be big expenditures– especially as event ticket prices keep going up, restaurants deal with rising costs across the supply chain, and spending is reduced in other areas. Swap grand purchases for careful listening and grand gestures and you can give your loved ones an experience that’s just as memorable, without a hefty price tag.And Those Are The Easiest Ways to Save Money in 2025If you’re looking for ways to spend less without feeling like you have less, these tips could be a great fit for you. From setting limits on splurges to seeking deals to getting creative with the things you love, there’s tons to do to help you avoid breaking the bank this year.And if one of your major costs is your car payment, why not find out how much you could save with a free quote from Auto Approve today?Get your free quote.
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*APR and Fees Disclosure: Auto Approve works to find you the best Annual Percentage Rate (APR), which is based on factors like your credit history, vehicle and desired payment terms. Fees to complete your loan refinance vary by state and lender; they generally include admin fees, doc fees, DMV and title. Advertised 5.49% APR based on: 2019 model year or newer vehicle, 730 minimum FICO credit score, and loan term up to 72 months. All loans subject to credit and lender approval.
Auto Approve has an A+ rating with the BBB and is located at 5775 Wayzata Blvd, Suite 700 #3327 St. Louis Park, MN 55416-1233. Auto Approve works to find its customers the best terms and APR, which are based on factors like credit history, vehicle, and desired payment terms. Loan amounts, costs, and fees vary by state and lender; they generally include admin fees, doc fees, DMV, and title fees, depending on the lender and period of repayment. There is no fee to obtain a quote and all refinancing-related costs are included in the amount financed so there are no out-of-pocket costs! For more information, please go to AutoApprove.com.