Getting an auto loan doesn't have to be hard. There are many people who are able to get a loan that fits their needs, is easy to pay off, and is reasonable for the car chosen. Here are some things that you can do to get the auto loan that is right for you and your budget.

1. Extend The Duration Of The Loan

One thing that people do if they need smaller payments is extend the life of the loan. When you initially apply for the loan, the bank or lender will probably give you somewhere around a 3 year loan. Paying a loan off in three years is ideal, however, it is not the only way to do it. Some lenders will let you extend the loan as long as 7 years.

Usually, you shouldn't choose to go that long out unless you will be purchasing a car that is newer than a certain year. This is because you don't want to be paying off a car when it no longer functions. If you choose an older car that only has about 5 good years on it, but you choose a 7 year loan, there could be 2 years that you are making payments without a working car. Thus, you should set some rules as to how long you can go, but it is worth asking about the duration of the loan with your lender.

2. Put Down A Bigger Down Payment

The best way to get a smaller car payment each month is to put down a bigger down payment. This is hard for many people, but it is totally worth the sacrifice. The less amount that you have to finance, the less you will pay in interest over time, and the less your payments will be each month.

You should know that the car dealership or lender isn't always going to push a bigger down payment. They make money off the interest of the payments, so if you can finance more, they make more money over time. Do your own calculations and, if possible, put down a bigger payment in the beginning.

3. Go Through Your Own Lender

It is cheaper in many cases to choose your own lender than to go through the dealership. If you can use the same bank or credit union you already bank through, you will most likely get a better deal and interest rate.

By understanding these things, you can get a lower and better auto payment each month.