 TITLE: How to Calculate an Affordable Car Payment CONTENT: How to Bring Down Your Car Payment\n----------------------------------\nThere are many ways to save on your car payment, and just because you can afford a certain amount each month doesn't mean you should plan to pay that much. Here are a few ways you may be able to get a lower car payment:\n*   **Buy a used car.** Used cars often cost much less than new vehicles, which means that your payments may be lower, depending on what your interest rate is. Used cars also may help you save on insurance, as your lender may have relaxed requirements on the extent of coverage you need to carry.\n*   **Make a larger down payment.** Consider saving for a few extra months so you can beef up your down payment when going to buy a car. Every extra dollar you pay in your down payment is one less that you'll have to finance and pay interest on over time.\n*   **Consider a lease.** Car leases often have lower monthly payments than car loans. Because you won't have any equity in the car after the lease term ends, car dealerships can often offer lessees new cars at a fairly low monthly rate. Lease agreements typically set a mileage limit and may have maintenance requirements, so make sure to run the numbers and look into all the details beforehand. Also keep in mind that while a lease may lower your monthly payments in the short term, you'll pay more in the long run because you will always have a monthly car payment. When you buy a car, ideally you'll keep the car for a period of time after you pay it off, which brings your monthly payment down to zero.\n*   **Improve your credit.** Interest rates are often based on creditworthiness. Improving your credit score before going car shopping may help you get a better interest rate which will save you money over the life of your loan. END