Don’t dwell only on the monthly payment.
Most people applying for a car loan jump right to the monthly payment. Although the monthly payment is important, it isn’t the most important number on your car loan. Make sure to pay attention to the total cost of the vehicle. Breakdown the monthly payment to see how much you will be paying in interest and other fees. Make note of how many years or how many payments you are signing up for. Sometimes paying a little extra now will save you a lot of money in the future.
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Know your credit score like the back of your hand.
Everyone will want to pull your credit score. It’s one of the first questions any car dealership will ask you. Your credit score is always something you should keep tabs on. Whether you have a membership or credit card company that keeps track of it for you, make sure to check up on it at least monthly. Your credit score plays a major role in determining interest rates and other loan factors.
What else should you know? Avoid the #1 Car Buying Mistake!
Take time to shop the perfect car loan.
“Most car buyers just take whatever rate they’re given.” – Miron Lulic (Founder and CEO of SuperMoney)
As with all major decisions, you should take your time when deciding on a car loan. You don’t have to take the first offer that comes your way. Get a few different quotes from online or local dealerships. If you have a good relationship with a bank, be sure to check with them too.
For more car buying tips check out our blog on Car Negotiating Secrets for the Savvy Shopper!
Run all the numbers.
The monthly payment and interest rate are not the only numbers to pay attention to. Ask about car buying incentives, rebates, and other special offers. See if you can stack offers and use them to your advantage. Different banks, dealerships, and lenders will have various options for you. Taking your time to make sure you are getting the right deal will pay off and lead you toward a successful financial future.
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