Avoiding the most common auto financing mistakes
You are at the car dealership when you get that antsy anxious feeling as the salesman does his dance across the showroom floor to his “finance people”. You have filled out the applications, agreed upon a price and are just waiting (sweaty palmed) to see how bad the news might be; or if you are going to be able to get the loan at all.
Even with the recent increase in availability of 0% financing and low interest rates, if your credit is blemished or slightly blemished it could take a lot of work to secure a good auto loan that will work for you. That is why it is so important to do your homework.
From much of what I have researched, it could be the wisest choice to get your auto loan with a financial institution outside of a dealership. i.e. - your bank or credit union.
I came across some of the most common mistakes people encounter when securing an auto loan. To review more check out this helpful article at allbusiness.com
Three Top Auto Financing Mistakes
1) Not investigating all your options - 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.
2) 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.
3) 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.
Educating yourself before financing your new automobile will give you more confidence as well as a greater sense of control.
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