Buying a car is exciting, but rushing into finance can be costly. A car loan is a long-term commitment, so it pays to avoid slip-ups that could add unnecessary stress or expense.
Common mistakes include:
Focusing only on the monthly repayment. A low repayment might look appealing, but if the loan term is too long, you could end up paying far more in interest.
Ignoring fees and charges. Application fees, account-keeping fees and early repayment penalties can add up.
Not shopping around. Dealer finance is rarely the cheapest option. Comparing a range of lenders can save you money.
Borrowing more than you need. Financing extras like insurance or accessories may increase your debt and interest costs.
Skipping pre-approval. Without pre-approval, you risk overcommitting or missing out on negotiating power with the dealer.
By steering clear of these mistakes, you can secure a loan that fits your budget and goals.
Thinking about buying a car? I can help you compare lenders and find a loan that suits your goals and budget.
