How To Avoid Beginner’s Mistakes When Looking For Car Loan

Posted on Jun 23 2015 - 7:01am by Dan Radak

Car Keys

The issue of (not) having a car can affect people on many levels. Younger people usually perceive the car as the symbol of freedom. The ones who don’t have a car at all can feel pretty bad and can’t wait to get one. Here is where they are most vulnerable. Out of immense desire to have their own car, they will rush into any car loan deal, just to buy their own vehicle. So, let’s have a look at some useful tips for getting the best car for your money.

Small (car) talk with relatives

Before you rush into the first car dealer’s place and buy a car as if it is an ice-cream, consider all the options. While today you can surf the web and get the information that you need for any dealer and any kind of car, the word of mouth still works pretty well. Meet with your friends or relatives and talk to them about your ideas. Maybe they know somebody who might give you better conditions for a car loan. Moreover, those experienced relatives might even know someone who is selling a second-hand car in fine shape. Old folks often know such people.

Don’t fall for too-good-to-be-true offers

Whenever you have to get a loan to buy something, you have to accept that your position isn’t the most promising one. But also, it doesn’t mean that you should just lower your head and let them suck the last cent out of you. So, the first thing you should set as the unbreakable rule when looking for the best loan is not considering con-like offers. If you think that you don’t know enough about these things, always ask your local community bankers for advice or try to get a car loan from a credit union. They often tend to offer lower rates, although they sometimes work only in a limited area.

Shrink the loan period

Pressed by everyday obligations, many people think that if they opt for a longer loan payment period, they will handle the loan more easily. However, this sounds opposite to logical thinking. If you are going pay $4,000 in 36 months, the amount of money paid for the interest rate will be much lower than the one paid for 60 months. It is clear that everybody would like to afford a useful and reliable car, but if you agree to continue paying a used car for five years, it could turn out to be a real waste of your money and your nerves. Check out what options you can get from Equity auto finance to pay for your loan as fast as possible. By getting a better deal in this part, you will be able to make plans for something else in three years’ time. Otherwise, you are going to paralyze your financial flexibility for six long years.

Calculate the total sum and mind fine print

This two-in-one tip refers to two pretty related issues that might be inconvenient when you want to get a car loan. Car dealers often calculate the monthly installment and tell you the interest rate, which is all legitimate. They even inform you on different possibilities in terms of the loan payment period. But what they often fail to tell you is the total sum that you are supposed to pay. And while the monthly bits and the rates might seem like a good deal, the total amount of money you should pay for your car could be pretty shocking.

In addition to that, contracts that are given to customers often have fine print that hides tricky addenda. Once you sign it, you cannot do anything about it. So, learn how to read small print before you sign anything.

Buying a car serves as a great social leverage for individuals. Families, on the other hand, get a functional vehicle that can improve their quality of life. That is why getting the most realistic car deal is so important. We hope that our warnings and tips will help you find economical car loan conditions.

About the Author
Avatar

Dan Radak is VPS security specialist, with ten-year experience. Currently employed as a consultant in a couple of Web Hosting companies. Also, he is a web writer and co-author on several technology websites. In his free time he likes traveling. You can reach him on Twitter.