How do I lower the payments on my car loan from Capital One?

I currently have a car loan from Capital One, and my payments are about $400 per month. I recently switched jobs to a position I love, but I unfortunately had to take a pay cut. Is there any way I can lower my monthly loan payments on my car loan?

Answer
Congrats on the new job! I’m happy to say that you don’t need to stress if your car payments are a tad high. You have plenty of options to lower them to fit your budget, including:
  • Selling the car and buying a more affordable model
  • Refinancing the car loan
  • Trading the car in for a more affordable model
However, the choices above assume that you have positive equity on your vehicle, meaning that your car is worth more than the balance of your loan.
If you’re upside down on a car loan (essentially, if you have negative equity), this is a more complicated process. Most lenders won’t let you refinance a car that’s worth less the balance of your loan.
If this is the case, you need to get your loan balance equal to the value of your vehicle. While your payments are already $400 a month, take every spare dollar or cent and put it toward your loan. This will help you lower your monthly payments faster.
Another good way to save money is to take a look at your car insurance premium. To make sure you’re getting the best deal on your coverage, check out the Jerry app—we’ll get you customized quotes from top insurers in seconds, so that all you need to do is pick the plan that works best for you. And if you do find one you like, we’ll even help you switch!
Best of luck; you’ve got this!
Eric Schad
Answered on Nov 22, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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