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Getting a car loan for the first time - avoid these mistakes

Author: Cynthia Madison
by Cynthia Madison
Posted: Dec 28, 2017
credit score

Everybody knows that a vehicle represents the second most important financial investment you are going to make in your life. The first one is the house, obviously. However, people still do not give these processes enough time and patience, which inevitably leads to costly mistakes on both the short and the long time. This article has the purpose to help those who intend to get a car loan and do not have the necessary knowledge and experience in the field because they are the most susceptible to making irreparable mistakes. Of course, this is understandable, not everyone is a master in every domain and finances, in particular, can be tricky. We will just assume that you shopped around, you became familiar with all the options available and you reached a conclusion: you want to buy the new Hyundai Elantra. After you established the right car for you, there is another critical aspect that you have to consider: you have to find out the 2018 Hyundai Elantra price and determine if you afford buying it.

Not assessing your credit score

Some people like to associate the mistake of shopping for a vehicle without assessing your credit score with selecting footwear without knowing your size. We understand why. After all, the credit score is fundamental when it comes to receiving a loan. Therefore, you have to know your credit score when you go to negotiate with the car dealer. Otherwise, he will most likely attempt to take advantage of your vulnerability and lie in what regards the auto payments. Everyone knows the main goal of car dealers and they will not hesitate to deceive others in order to achieve it so you should prevent this from happening by carefully reading the copies of your credit report, discovering any taking care of any discrepancies.

Directing your full attention towards monthly payments

We have to mention that we do not encourage overlooking monthly payments because they are important, but we do believe that you have other things that you should focus on equally or even more important. For instance, the overall purchase price of the vehicle is one of those things. You also have to be really careful when talking to the car dealer because you should not let certain details escape your mouth, such as the amounts of money you are able to repay each month. He may suggest letting him lower your monthly payments but this would only work in your disadvantage because it will inevitably result in longer-term loan and increased interest.

Not analyzing the situation thoroughly

Do not rush into accepting the first financing offer without evaluating the benefits and drawbacks. Consider various options in terms of financing and always remember that if you choose dealerships, you will receive higher rates because they want to make profit. Moreover, do not rush into the deal. The car dealer may try to make you act on impulse but you have to be smarter and not allow emotions overwhelm you or take over control because then you will no longer be able to preserve an objective perspective.

About the Author

Cynthia Madison is a young blogger and economics and marketing graduate. She writes about home, lifestyle and family topics and is a senior contributor to popular niche publications.

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Author: Cynthia Madison
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Cynthia Madison

Member since: Jun 30, 2017
Published articles: 74

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