With the excitement and stress that accompanies the purchase of a new vehicle, it can be easy to forget some important things that are part of a successful car purchase. Did you know that one way to contribute towards a positive car buying experience is to take care of a number of things first?
This advice is recommended by many experts, especially for individuals with less than perfect credit. If you follow a few simple tips, you will be able to avoid some common car buying mistakes.
Steps to Prevent Car Buying Mistakes
When you are researching such an expensive purchase, remember that it is like studying for a big test: The stakes are high, and you will want to be prepared.
- Check your credit report and score.
The interest rate lenders offer will be dependent on your credit score, which is called a 'snapshot' of your credit profile.
- Have you considered used?
Vehicles are being built better, and last longer than ever before. When finances are a concern, buying a vehicle that has already taken a major hit in depreciation is the savvy choice.
- Not having a down payment.
While the no money down advertisements are tempting, a smart buyer will still have a down payment. Not only can it help you lower your overall interest costs, but it will help prevent you from being 'upside down' on your loan, or owing more than the vehicle is worth.
- Trade in values.
A trade in vehicle is another form of a down payment. You can research what yours is worth by using a vehicle valuation guide, like Canadian Red Book or Canadian Black Book. We suggest you wait until the terms of your new car are settled, so you can make it a separate transaction to get the most value from it.
- Mechanical and body inspection.
If you are buying a used vehicle, the fee for this professional service has the potential to save you a lot of money later on. You don't want to pay for repairs due to problems that are not immediately evident to the untrained eye.
- Looking only at the monthly payment.
If you do not pay attention to the total price of the car you are buying, you may find that extras have been added on, such as an extended warranty. Or maybe the interest rate has been increased. If you need to finance a car for over 60 months in order to afford the monthly payments, you might want to consider a more affordable vehicle.
How We Can Help
At Canada Auto Loan, we have many years of experience in assisting customers with subprime financing. When you fill out our quick and secure application, we match you with a dealer near you, who can pair you with a lender willing to work with you.