Common Pitfalls in Auto Financing

Consider all of your available resources for your new or used car auto loan. There are many pitfalls that could lead you down the wrong road to making costly mistakes in selecting where to get your financing.

One of the biggest mistakes in saving the optimal amount of money is that most people think that their auto dealer will educate them on cost savings and that is simply not their priority.  There are many factory rebates available for different makes and models, (you can find them online) that the dealers will not tell you about.  They are in the business of making as much profit as possible both from the sale of the automobiles as well as from the interest rates they charge in financing.

Are you aware that if go to your local bank and request a loan application through the dealership, you will be entitled to get a lower interest rate than the dealership would offer you directly?

There are many deals out there, but there are just as many scams and it is your job to protect and educate yourself to ensure you don’t get ripped off. It is a good idea to get several quotes from as many different institutions as possible.  Try getting one from your bank, one from the dealership and one from your credit union if you belong to one, then sit down and compare the rates you are offered with any factory rebates that are being offered at the time to see which offer is best for you.

Be aware that the higher your credit score is, the more options that are available to you, most financial experts highly recommend that you have a current copy of your credit report and know what your score is before considering any type of loan application process.

Another common mistake that many people make in financing their automobile is that they fail to read the contract.  You should read any legal contract thoroughly before you sign.  Purchasing a car is a very big commitment these days and you owe it to yourself to be as informed as possible.