Few purchases incite as much excitement as bringing home new wheels. But crucial aspects of the shopping and financing process still trip up eager buyers. Sidestep these common new vehicle and loan pitfalls:
Getting Distracted by Monthly Payments
Dealers often emphasize low monthly sums without reviewing total financing costs across long terms – 72+ months – carrying substantial interest charges. Crunch full numbers.
Failing to Lock-In Low Rates Early
New auto loan rates keep climbing. Solidify competitive financing through pre-approval first before visiting dealer lots so you negotiate from an informed vantage point.
Only Evaluating Dealer Financing Offers
Sure, seeking in-house financing seems convenient. But outside banks and credit unions frequently offer lower rates thanks to lending specialization and non-profit statuses respectively.
Not Understanding Fees
Doc fees, origination charges and more vary greatly between auto loan providers. Mastering precise comparisons means factoring in all fees influencing end costs. Ask explicitly.
Additional New Car Buying Mistakes to Avoid:
– Waiving gap insurance when making low/no down payments
– Letting optional extras like extended warranties inflate price
– Failing to validate latest incentives on desired models
Securing exciting new wheels calls for dodging tempting shortcuts by planning meticulously, comparing thoroughly, and reviewing fine print relentlessly before riding off into the sunset worry-free!