Buying a car is one of the most significant financial decisions we make in our lives. So it makes sense that you should be as prepared as possible, right?
When on the hunt for a new car, many fail to look at the big picture and could end up defaulting on their loan at some point in the future because of it. Here are three things you should know to avoid committing to a car that's not in your budget and not meant to be:
Your Credit Health
Walking into a dealership and knowing the state of your credit is one of the best tools to have in your back pocket when purchasing a car. If you haven't checked your credit report in a while, there could be small discrepancies that could affect your report and credit score, which could result in you getting a less than favorable loan rate, causing you to pay more in the long run. Knowledge is power.
The Best Rates
Many consumers looking to purchase a car automatically go with the dealership to finance their loan. Most of us never ask ourselves if there's something better out there – but what if there is? Shopping around for a car loan never hurts and could lead to a lower rate. If you're shopping for a car, do yourself a favor and do your homework on loan rates.
What You Can Actually Afford
Most important of all is knowing what you can actually afford for a new car. While longer loans with a lower monthly payment seem appealing at first, you can actually end up paying more in interest than you would with a shorter term loan with a higher monthly payment. It's always recommended to go with the shortest loan you can afford so you can pay your car off as quickly as possible.
For more car loan need-to-knows, stop in to chat with someone at your local branch.