Auto financing can come from one of several sources,
including banks, credit unions, and auto dealerships. If you're serious about
buying a car, you need to investigate the various possibilities. Here are the
top mistakes some people make when seeking and securing an automobile loan.
Not investigating all your options. Many people use credit unions for
automobile loans, while others find good deals from their local banks. The key
is to investigate all potential lending options, including the dealership.
Several sites, such as RoadLoans.com,LendingTree.com, or E-Loan.com will
help you make financing comparisons, and in some cases, secure loans.
Going by rate alone. The rate is only part of the equation.
You need to know how much you'll be putting down and the terms of the loan
before making a decision.
Following your emotions. Make sure that you have done your
research up front, and you know which car you want and what you are prepared to
pay. Do not cave in if the dealer pushes another color or model, for instance,
or will not waver on price.
Not reviewing your credit ratings first. You should access your credit report and
know what your FICO score is. This way you'll know exactly what
the dealer is looking at, so that he or she cannot tell you your number is
lower than it actually is. Additionally, if there are any errors, you can
inquire about them beforehand.
Being quick to accept the dealership financing offer. Dealerships typically offer higher rates
because they buy financing from banks and other sources, and raise the rate to
make a profit. Shop around.
Focusing on payments over price. If you are focused more on low monthly
payments than on the price of the car, you may be paying more in the end. Know
the overall price of the car and consider the APR, terms, and length of the
loan.
Looking for the car first. If you are serious about buying a car,
you will want to look at financing rates first and determine how much you can
afford.
Not being able to walk away. Once you begin negotiating, especially at
a dealership, you are not obliged to stay. If you do not like the offer or the
manner in which the negotiations are headed, walk away.
Not taking the shortest term loan. Keep in mind that carsdepreciate quickly, so
you'll want to pay off the loan in a short time period. While the monthly
payment will be higher in the short term, the interest payment
will be lower.
Not determining what you can comfortably afford. Unlike a homemortgage, in which people
look long and hard at what they will be able to pay over the next 10 to 30
years, car buyers do not always take such payments into careful consideration.
"It is only for three years" is a familiar excuse for not evaluating
the impact of such payments on your budget. Before buying a car, you need to
consider how much money you can put down, and how much you can afford to pay on
a monthly basis.
Read more
Thank you for the good writeup. It in fact
ReplyDeletewas a amusement account it. Look advanced
to far added agreeable from you! However, how can we communicate?
Stop by my webpage This Internet page
ReplyDeleteWhile tracking down a great deal on a new car is important, arranging affordable and reasonable financing for it is, too. All too often, car buyers focus strictly on the price for a vehicle - and don't take enough time shopping for auto loan deals. Stop in at your local credit union, bank and other financial institutes to see what they have to offer.