If you’ve applied for a 360 Finance car loan, you may want to find ways you can save on the total costs in the long term, or simply make it easier to keep up with your regular payments so you don’t incur additional fees.
Keep reading for some easy ways you can save money on your car loan.
Have a budget in place
One of the easiest ways to ensure you can keep up with your car loan repayments is to have a budget in place. This is something you likely did before applying for your car loan, but it is good to have one set up for the duration of your car loan so you can keep track of how much you’ve paid towards your car loan.
Budgeting can make it easier to save as you can take control of where your money goes. If you have a car loan it’s important to prioritise paying it off and keeping up with each payment so you don’t incur further charges.
Adjust your budget to ensure you can afford loan repayments, as well as other costs involved with owning a car. Including these costs in your monthly budget ensures you allocate the appropriate amount of your income more efficiently and helps you follow through with your regular repayments. Using a car loan calculator can help you get a rough idea of your car loan costs for the duration of the loan term.
Automate your payments
Meeting your car loan payments on time is crucial, and automating payments for your car loan helps ensure you don’t miss a payment.
Setting up a direct debit means you won’t have to think about it each month, though make sure you have enough in your account at the time the money comes out to prevent the risk of missed payments.
Once you have a car loan, paying your car loan repayments should be one of your top priorities. Organise with your lender to set your repayments to coincide with your salary payments, so as soon as money comes in, you can direct it towards your debt. This way you don’t risk not having enough money in your account to pay off your loan, as if your car loan repayment comes out straight away you won’t be able to spend it on something else.
In most cases, you will receive a penalty for missed payments, and if you continue missing payments you may face serious consequences and it will also negatively affect your credit score.
Put more money towards your loan
When tax time comes around and you find yourself with a nice return or you get a bonus from work, consider putting some of that money towards your car loan. Putting more money towards your car loan when you can, will help you pay it off sooner which can help you save money as it will reduce how much interest you pay overall.
Firstly though, make sure to check the conditions of your car loan to see if you’re able to make extra payments without incurring additional fees.
If your car loan does allow for extra payments without fees attached, aim to pay additional lump sums towards your loan at least once or twice a year if possible. This will help you pay off your loan soon, which can help you save in the long term.
Look to refinance
Perhaps when you first applied for your loan you had a smaller budget, or you didn’t have a great credit rating. If your financial situation has improved it may be a good idea to consider refinancing your car loan.
Refinancing your car loan may help you save more in the long term. If your credit rating has improved you may be able to refinance to a loan with better interest rates. Or you may look to refinance to a shorter loan term if you’re able to afford bigger monthly repayments, as the shorter your car loan, the less you end up paying overall.
Before you decide to refinance, you can use a car loan calculator to see what your repayments and total loan amount may look like if you change the payment regularity or the loan term. This can provide a guide on whether you could save by refinancing your car loan.
If you have a 360 Finance car loan, contact our team to discuss refinancing your loan.