The best way to keep your car payments low is to do your research before purchasing your vehicle. As a part of this research get pre-approval from your bank, online lender, or a credit union. Make sure you get several pre-approval offers from several lenders to compare the rates they are offering. 

Using the dealership’s financing options is a sure way to pay thousands of dollars additional each year. Most consumers do not know that car dealerships are legally allowed to increase the interest rate above what you qualify for. Supposed your credit score is excellent and qualifies you for an interest rate of 3.4%.

The dealership is legally allowed to turn around and offer you the car at 5%. 

Banks are held to different standards and must offer you a rate based on different parameters. 

Another smart way to finance a car is to make sure you do not offer too much information to the salesperson. 

One of the first questions he or she asks you is if you have a trade-in and how much you are looking to spend. These are questions designed to trap you into paying more for a vehicle. 

It is a better strategy to already know your car’s worth before going into the dealership so you negotiate from a position of knowledge. 

One of the best ways to finance a car and get the lowest payment per month is to plan to walk away from the offer. This is especially true if the offer made is more than you want to pay each month or you believe the salesperson is trying to manipulate the rates and payments too much.