If you’re in the market to purchase a new car through a fast auto loan, Canada has many options you can browse through. You might have a car that has a million miles on it but still looks and smells brand new or you’re someone who likes to get behind the wheel of a new car every year. Regardless, purchasing a new car can be an exciting new experience for everyone; however, it can quickly turn into a financial burden when you learn that you overpaid for your auto loan. Here are five mistakes to steer clear of while negotiating an auto loan at a dealership.
Disclosing Your Budget
When you tell how much money you are willing to spend on the car a dealer can manipulate you in a variety of ways for example they can convince you to buy a car that’s out of your overall budget but falls in your monthly payment budget.
An expensive car for a longer term can be twice as expensive as a car with a shorter term as the interest you owe will keep exceeding.
No Online Research
Always do your homework online before heading to the dealership so you know how much the car is genuinely worth and how much you will have to spend for it.
You can plan up a loan that matches your budget and avoid some usual auto loan problems with a little research and online tools like a free car payment calculator available on Canada Prime Autos website.
Checking Credit Score
Before offering you an auto loan, the dealership will verify your credit score, but you should check your credit score yourself first so that you don't pay more than you have to.
For example, a dealership may offer you a loan with a 12% interest rate even if you are only eligible for a 3% interest rate. It's also a good idea to look around at several dealerships before settling on one to see what they offer.
If you owe more on your existing vehicle than it is worth, avoid rolling the negative balance into a new car loan.
It's wiser to live within your means and pay for your present vehicle until you can develop an equity or break-even before getting a new car loan.
The salesperson at the dealership may offer you further add-ons in exchange for agreeing to a certain payment plan, but this is generally a debt trap because you don't want to finance something you can install yourself, such as an audio system or mudguards.
Don’t Get Bogged Down
Purchasing a car through finance is tricky but not that complicated. Visit Canada Prime Autos to look for any questions you might have related to auto finance. We specialize in bad credit car loans and bankruptcy car loans in Canada.
Call us today at (647) 598-7463 or visit our website canadaprimeautos.com to get the best deals.