We’ve seen many car buyers in remorse after getting approved for an auto loan because they made some mistakes in the process. It is our goal here at Atlanta Auto Approval Center to see Atlantans drive their cars happily. We want to help you get the right auto loan by not leaving you uninformed.
This guide discusses some common car loan mistakes. Read about them below and learn the right thing to do.
MISTAKE #1: Negotiating the monthly payment
What’s wrong with negotiating the monthly payment? It allows the dealer to hide other costs and gives them an idea of how much room there is for them to raise the price.
Instead of focusing on the monthly payment, negotiate the car price down. Don’t be a monthly-payment car buyer who chooses a car based on the monthly payment. In addition, never let the dealer know how much you can afford to pay each month.
MISTAKE #2: Ignoring your credit rating
You let a dealer or a lender tell you anything—regardless of whether it is true or not—about your credit when you don’t check it beforehand.
Have you heard of the credit score lie? Unscrupulous lenders and dealers can lie about your credit score if you let them get your credit report for you. To avoid this, get a copy yourself beforehand and be well familiar with your credit standing. In that case, they won’t be able to pull their trick on you.
MISTAKE #3: Visiting dealerships first
We know it’s exciting to choose a car but we don’t recommend doing it before getting approved for an auto loan. It’s smartest to take out an auto loan first before visiting dealerships. It’s more convenient. With an auto loan in hand, you don’t have to discuss financing with the dealer anymore. You can focus on negotiating the car price and other terms.
MISTAKE #4: Giving in to a longer loan term
What makes car buyers these days go for a longer loan term are lower monthly payments. With a tight budget, many car buyers find car-buying easier and more affordable with lower monthly payments. But what they don’t realize is they won’t really save more money by extending the repayment period. Long auto loan terms carry higher interest rates and cost them more in the end.
Therefore, keep your loan term short instead. Monthly payments may be bigger but you won’t pay too much for your car.
MISTAKE #5: Still sitting when you should’ve walked away
Remember this: If things aren’t in your favor or don’t feel comfortable at the lender’s office, you’re free to walk away, and that’s okay. The same goes with dealership negotiation. You don’t have to tie yourself with a deal that’s going to cost you a lot. There’s always time to back out until you sign on the dotted line.
MISTAKE #6: Not comparing auto loan quotes
Are you lazy about finding other lenders and comparing multiple quotes? Don’t be. The effort surely pays off. Comparing quotes allows you to find the best auto loan in Atlanta. Do not fall immediately for the first offer that comes your way.