Avoid These Car Loan Mistakes

While car shopping, we want to make sure we find the best deal out there and make sure we can afford the financing we get on a car. However, many car buyers pay attention too much to the price tag and not enough on making sure they get a good deal for a car loan. Here are a few common car loan mistakes to avoid because it can be costing you more than you think.

•Being Rushed By The Salesman

When you go to a car dealership the first thing to happen is to get greeted by the salesperson. They will immediately ask what you are looking for and will rush you to pick a car and close a deal. They will also slip in some information about financing terms and sometimes, you can get nervous and say yes to anything and everything. Next thing you know, you signed up for a loan with interest rates you can’t put your head around and you are struggling to figure out how you can afford your car. Put your foot down and be willing to negotiate!

•Not Knowing your Credit Score

If you don’t know your credit score and the dealer makes a credit check, they can pretty much tell you anything. They can easily say your score is lower than it actually is and will start building out financial terms that are too expensive for you. Go in knowing your score and how it can benefit you and ask the right questions.

•Financing Longer Than 36 Months

It is best to try to pay off your car before the 36 months end. Research how much you can afford and how much you are willing to put in as a down payment and how much you are willing to pay monthly. It is a bad idea to have your car loan for longer than 36 months because your car will begin to depreciate and lose its value. A great suggestion is to wait and save up to get the car you want or if you can’t afford a car, simply downgrade and choose something cheaper.

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