When getting car loans, the most common financing option is to work with your dealer. We can offer you great terms and put you in a safe and reliable vehicle. However, be sure you do your homework to work out the best deal for you. Avoid these costly mistakes and you’ll be alright.
- Not Knowing Your Credit Score
A seedy dealer will try to tell you your credit is worse than it is, but even with a reputable dealer like us, knowing your credit score will put you on equal footing so you can negotiate a price on your own terms. You should know not only your score but any blemishes you might have. If you explain good reasons for a setback in your score, we may be willing to work with you despite the number.
- Not Negotiating Loan Terms in Pieces
You don’t want to negotiate your loan in terms of monthly payments alone. You’ll likely end up with a longer loan period and have to pay a fortune in interest. Instead, talk to us about each section of the process separately – trade-in value, price and financing. You’ll have a good chance at getting a good car at a great price.
- Not Choosing Correctly Between Low-Interest Loan and Cash Rebate
If you have great credit, you may be offered a low-interest rate for car loans, but should you take that over a cash rebate? Do your research and figure out which will save you the most money as offers vary.
- Not Purchasing Add-Ons Separately
Paying for add-ons up front instead of adding them into your loan can save you hundreds of dollars over the term of your financing. If you can’t resist things like fabric protection and extra sealant on your paint job, be sure you have the extra cash to put towards it on the down payment.
Car loans don’t have to cost you a lot of money on top of the price of the car. By avoiding these costly mistakes, you can keep your financing at a price you can afford so you can pick the best vehicle for your budget.