CAR FINANCING: 3 MISTAKES TO AVOID
April 25 2023, L’ami Auto Credit
Car financing is an excellent option for buying a quality vehicle. It allows you to spread the cost over a longer or shorter period of time in order to select a car of your choice, and ideally of good quality.
However, some people get excited about getting a loan too quickly and commit mistakes. Today, we are going to point out to 3 common mistakes.
1. Not Making a Budget
Whether your credit score is good or not, the first mistake you should not make is to get a financing plan without doing your calculations. Even if you manage to get a loan, it doesn’t mean it fits your budget!
Take the time to calculate your monthly expenses and income. Consider not only the monthly payments, but also other costs:
• Gas
• Insurance
• Maintenance
• etc.
Applying for financing requires a little preparation!
2. Multiplying the Requests
Whether it’s because of a refusal or to get several proposals and choose the best one, making too many requests can really hurt you. In fact, every refusal has an impact on your credit file!
So, what is the best way to finance a car? Dealing with a specialized credit bureau will give you direct access to the loan that best suits your situation, your budget and your needs.
3. Only Look for the Lowest Monthly Payment
Obviously, you must respect your budget. However, be careful not to fall into the trap of financing for a very long period, such as 84 or even 96 months.
In the end, you risk paying much more in interest! It is better to finance a cheaper car, but over a shorter period.
With L’Ami Auto Crédit in Chicoutimi, La Malbaie, Baie-Comeau, Alma and Sept-Îles, get tailored advice for an adapted loan.
