From hidden fees to negotiating high-interest rates and not reading the fine print, American car shoppers make several big mistakes. Let’s take a look at what you should do to get the best deal possible.
Hidden Charges
Dealers can place many hidden fees and charges that can significantly change the rate you thought you were signing up for. Insist on having your dealer re-verify the total interest payable during the loan term.
Extended Warranty
Did you know you could negotiate your warranty? Most consumers don’t understand that this is possible. Check if the dealer can offer you an extended warranty, which will help you save money.
Late Payment Charge
Many loans have a late payment charge. Avoid this by checking to see when your first payment is due and the correct amount to be paid and setting up a recurring reminder.
Check the Terms
Before you sign on the dotted line, take the time to read every line, and ask as many questions as you need to understand the dealer’s offer.
Consider Insurance
Almost all third-party auto finance companies make it necessary to buy full collision and comprehensive car insurance coverage on your vehicle until you have paid off the loan in full. Make sure to find out which is your best option well before you start negotiations.
Know What You Are Signing up For
While shopping for a car, remember dealership loans can be convenient but require more diligence. Many customers end up financing their vehicle purchases with a retail installment sales contract instead of a car loan. This means rates can be higher; you probably won’t get approved, and worse, you might have to bring your car back.
Pay Attention to Extra Costs
Buying a car comes with some nominal expenditure, like delivery charges, titling fees, and closing costs. It’s best if you look at these costs very closely to understand what these extra fees are, or you’ll end up hemorrhaging money on your loan unnecessarily.
As a car owner, chances are you have made many of these mistakes in the past. The trick is to learn from your mistakes and avoid paying any more than you need