Avoid these 7 mistakes when getting a car loan

For most people, buying a car is a big deal. It can signify a transition from one chapter of your life to the next. Or maybe you have finally saved enough money to purchase a vehicle and are ready to feel the pride that can come with driving a new car. No matter what the circumstances, it would probably be unwise to walk into a dealership looking to buy a new car like you would walk into a department store to buy a new pair of shoes. Here are some tips on what to do and what to avoid when buying a car:

Plan out your budget
Before even thinking about consulting a dealer, one should sit down and look at the options. First of all, you would need to plan out your budget. With the help of an auto loan calculator, you can enter your information and be guided on monthly payments and the overall costs of a vehicle. This calculator gives you a more realistic view of your financial responsibilities and limitations, which can also help you find loan options to support your budget.

Don’t forget preapproval
If you end up in need of a car loan, preapproval is suggested in order to avoid excessive future debt. RoadLoans offers preapproval in order to help clients walk into a dealership prepared and aware of their financial obligations.

Always do your homework
Researching financial options, prices and offers (from online stores to dealerships, buying new vs. used, etc.) is a useful step that can help you get a good sense of your options and help you save money. Although it may take time, it’s worth it in the long run.

Buying on your own time
A big mistake consumers often make is buying a car too soon. Maybe at the place in life you are at, you cannot afford to buy a new car. If that is the case, save up and wait it out. Don’t get yourself into more debt than you can afford.

Buying the right car for you
When you finally get a plan together and find a dealer, test-driving the car is an important extra step that may seem unnecessary to most. You may be buying a car for the name, look, or whatever reason, but you may not know how you feel while driving it. (From my own experience in studying advertising, the car will always look perfect for you in the ads.) You may end up not liking the style or setup of the car, and you would never know unless you take it for a test drive. You may think it will fit you, your family, and friends, yet when you sit in the front seat you realize it could pass as a clown car.

Avoid extra costs
When discussing with a dealer, make sure to ask about extra costs that may be hidden from you at the time of purchase. These little start-up fees or generally assumed costs (for example registration and documentation fees) may not be to your knowledge, and some dealers might not bring them to your attention.

Additional costs that can be unnecessary and cause you to lose money are add-ons. Most cars have options that seem to tailor to your needs, like a sunroof, display options, alloy wheels, heated seats, etc. However while some of these may be what you are looking for, you most likely do not need or will not use all of them. But, with sufficient research and a good dealer, you can walk out with a car that fits your needs and is a realistic fit for your budget.

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