The Worst Ways to Buy a Car
After buying a home, buying a car is one of the biggest (and most stressful!) financial decisions that you will probably do more than once. It evokes a lot of questions, such as how am I going to pay for it and do I have a new or used car? Planning ahead means that you are less likely to make the mistakes that make it even more costly and stressful than it needs to be.
Are you in Credit
You wouldn’t buy a house not having an idea of what your credit score is and buying a car is no different as this will influence whether you can get approved for a car loan or not. There are many websites for which you can check your credit rating. If you find that your credit score is not favorable, then research ways which you can improve your credit rating. The worst fact about not having a good credit score is that you can get a car, but you will end up paying a higher interest rate as well as putting down a bigger initial payment.
Not doing the research
It’s paramount that you undertake extensive research should you decide that buying a car off the internet is the best route for you. Websites offer a vast amount of information about car models, features, and prices, as well as having reviews on different types of cars.
If you want a used car, then you need to make sure that you do all the relevant checks on it before you buy it, such as getting the VIN number and looking at the car’s history. After all, who knows what has happened in the past to a car!
Not Being Detailed About the Financing
You’d be forgiven for thinking that obtaining a loan from a car dealership is the only way forward when purchasing a car on finance. Should you decide to do this, however, then make sure you’re aware of the fact that car garage loans are often several points higher than you would get if you took it from an online lender or a bank.
An online lender can be in two forms; a long term loan where you commit for a certain amount of years to pay off the loan or from reliable direct payday loan lenders that are repaid back under a lot shorter time period, such as those found at LoanPig.
Looking to Trade
If you have a vehicle that you want to trade in to cover the cost of the new car, then make sure you research fully the value of your vehicle before you take a salesman’s word for it. Print out the value of the car that you have found online and take it with you, so you have this as proof that the car is worth more than you are being told.
To be forewarned it is to be forearmed and making sure you’ve done your prep and research before you buy a car means that you are less likely to find yourself out of pocket when it comes to the final purchase.