There are lots of financing options out there for your car loan. Several sources include banks and credit unions as well as auto dealerships. To be a good steward of your money, you should look at all your options. Financial planning can help you avoid making common mistakes when securing an automobile loan.
That is why I want to help you by sharing the 3 car loan mistakes you need to stop doing.
- Not reviewing your credit history - You should have access to your credit report and understand what it says about your financial situation. It lists your FICO score on your credit report and you need to understand what it means. You can get a copy of your free credit report by visiting annualcreditreport.com. By law, it allows you to get one free copy of your credit report every 12 months from each of the three major credit bureaus — Equifax, Experian, and TransUnion.
- Not looking at the total cost of the car - Often car buyers want to know and shop for the monthly loan payment. Always shop for the total car loan amount. You may end up paying more at the end of your loan period if you solely focus on low monthly payments instead of the total price of the car. You should know the overall price of the car and consider the APR, terms, and length of the loan.
- Not following both your head and your heart—If you have done your due diligence, then you know which car you want and what you are prepared to pay. You don’t want to end up in the car of your dreams only to realize the nightmare of not be able to afford the payments and live still within your lifestyle. Having your ideal car type in mind and knowing how you can afford it is the best way to make this mind-heart connection. Now you can go out and find the car of your dreams that you can afford.
These are the 3 car loan mistakes you need to stop doing prior to your next vehicle purchase, especially if you want the best from your next car loan! If you are serious about buying a car, please consider contacting me. I would love to help you!
