Hello! Welcome to Adelaide Raceway. We are back with another article. We’re going to be talking about car loans, but we’re talking about the three biggest mistakes people make when getting a car loan. These are things that can hurt you financially, and we want to help you from falling into this trap. If you’re serious about getting a good car loan, then you’ve come to the right website. At Adelaide Raceway we are serious about automobile loans, and we want to help you out! If you’ve got any questions about this blog post, then you can send us an email.
- Paying too Much for the Car – We don’t know how many times this has happened… but it happens all the time! We’ve been with people buying cars, and they will be paying $5,000 more than the value of the vehicle. If you’re purchasing a Nissan Alimta, then ensure you aren’t paying more than the value of the Nissan Altima! Unfortunately, dealerships are trying to make money too. They’ll charge more than the value of the car, and customers will buy them. Most times, people aren’t upset when they pay more than the value of the vehicle. If they really like the car, then they don’t get too upset. That is dumb! We don’t want you to fall into this simple trap. Although the dealership needs to make money, they don’t need to make money on you! So, don’t pay too much for a vehicle. When you’re unsure about the value of a vehicle, your financial institution will inform you about the price of the vehicle. Banks don’t prefer loaning $12,000 on a $4,000 car because of the difference in collateral.
- Don’t Forget About the Interest Rate – We were just talking about not paying too much for a car, and this rule isn’t much different. Although you may love the car, don’t pay more than the value! If you’re set on purchasing a vehicle, then you need to bargain for a good interest rate too. After settling for a bad interest rate, then you’ll lose money in the long run. We’re not sure about you, but we don’t like losing money or bad car loans. At Adelaide Raceway, we’ve seen people with 23% interest rates on car loans… don’t be these people! Cars aren’t cheap, so get a good interest rate. If you have a poor interest rate, then refinance the loan. Most of the time, financial institutions will drop the rate if you ask them nicely. As a general rule of thumb, don’t get a loan with 7% interest rates or more.
- Financing the Vehicle for too Long – If you’re like us, then you prefer shorter car loans. Unfortunately, longer car loans are accompanied by higher interest rates… Typically, this leads to higher car payments. We don’t recommend financing a car for more than two or three years. If you’re financing a vehicle for six, seven, or eight years, then you’ve got a problem. If you want to drive a beauty, then you’ve got to be able to afford it.
Thank you for reading this post! Hopefully, you learned something helpful about the automotive industry. If we didn’t strengthen your financial IQ, then we let you down. Anyway, have a great day. If you’ve got any questions, then visit us at www.adelaideraceway.net!
Thank you Bakersfield Car Detail for sponsoring this post! We truly appreciate the help, and we look forward to working with you in the future!