4 Car Loan Mistakes That Cost You Money

1. 4 Car Loan Mistakes That Cost You Money

2. If you are like most, you will finance your new or used car purchase with conventional financing or bad credit car loans. Before you do, though, you should think through the loan process. Just a few seemingly small mistakes can cost you a tremendous amount of money over the life of your auto loan. When you are applying for your loan, watch out for these four mistakes.

3. Mistakes you Should Avoid when Getting Car Loans Failing to Negotiate Total Price When you buy a car, it can be tempting to negotiate monthly payment instead of total price. That’s a mistake. While you should understand how much you want to pay each month on car-related expenses, you should not give this information to the dealer. If you do, you risk having the dealer pad the price to get close to your monthly limit. Not Knowing Your Credit Score You wouldn’t go into any other type of negotiation without knowing exactly where you stand, so why would try to buy a car without knowing your credit score?  With just a bit of research before you go to the dealership, you can know exactly what your creditworthiness is. That critical piece of information will give you considerably more bargaining power.

4. Financing Extras When you purchase your new or used car, you should finance as little as possible. If you include extras and add-ons into your financing amount, your total loan repayment can skyrocket. You shouldn’t forego extra features, but you should try to pay for them with cash when you can. Buying the Wrong Car Repeatedly financing cars can take a toll on your wallet and credit score. Because of this, you should try not to buy the wrong car. Instead, try to find one you will keep for a while. If you must test drive several vehicles before you find the right one, do it.

5. Before you apply for conventional or bad credit car loans, consider these financing mistakes that might cost you money. http://www.carloanskingston.ca/creditmediccarloans/?p=540