Wednesday, 2 January 2019

Big Mistakes People Make When Getting A Car Loan

Today we are going to be talking about the 3 biggest mistakes people make when getting a car loan, this is a thing that can hurt you if you fall into this trap so we want to make sure that doesn't happen. 

1. Paying Too Much For The Vehicle

I don't know how many time I have applied for a car loan for somebody and they are in love with this car, they really want it and then I go to learn the value of the vehicle, they are paying $20,000 for a car that only worth $15,000, they say those dealers are trying to make money so they are going to charge you more than what the car worth since they love the car soo much they really don't care.

That is really bad, don't fall into that trap by paying more than the value of the car, just because the dealership is trying to make money doesn't mean it should come off you. Have this tip in mind whenever you are about to get a car loan

  • Do not pay too much for the vehicle 
  • Look at the average and the prices 
  • Talk to your financer situation about the vehicle they would tell you what is worth
  • Don't fall into that trap paying $10,000 for a car that worth $6,000

In a week alone a friend of mine is paying $12,000 for a car that only worth $4,000 that is $8,000 downside, that is ridiculous.

2. Paying A High-Interest Rate

This is similar to what we just talking about, people loving the car soo much so they are willing to pay too much for it, sometimes they love it soo much so they don't really care what the interest rate is, it's going to cost you soo much money if you fail to get a good interest rate. Get a good interest rate and if you have a bad one right now make sure to refinance the vehicle, always pay attention to the rate, do not get a car loan that is higher than 10% even 10% suck, that is not a good interest rate so if you are higher than that you need to do something about it.

3. Finance The Vehicle For Too Long

It's something to get a car loan and pay it off for 2 to 3 years, it's something else entirely to finance a car for 6 to 7-8 years, that is ridiculous. I know everyone wants the car of their dream and they want to drive a nice vehicle but if it's going to take you 6 -7 years to pay that car off, you are just trolling away money and interest. Don't fall into the dealership trap of trying to find overside or overprices car loan fitting your monthly budget by paying off for 84 months or 72 months, you are just trolling your money away. And if you got a bad interest rate on top of that then you are screwed.

That is what I want to talk about today, the 3 big mistake people make when buying cars don't make one of them, if you got yourself into this bad situation try to read our other articles to get your way out of it.

No comments:

Post a comment