Buying a used car can be an expensive venture, which is why it’s important to work with a trusted dealer to take the stress out of car shopping. Unfortunately, some dealerships take advantage of their customers, causing them to make serious financial mistakes. Learn the important steps to take before you go car shopping to help protect you financially and ensure you choose a dealer with your best interests at heart.
Focusing on Your Monthly Payment
It’s only natural to have a budget in mind when shopping for a new car, but this can actually hurt you in the end. One of the first questions some dealers ask you is how much you’re willing to spend on a monthly payment. This can cause you to ignore the overall cost of the vehicle in favor of getting the ideal payment amount. Many lenders are willing to stretch out a loan to meet your requirements, which means you end up paying more in interest than necessary. Always look at the overall picture before making a final decision, even if it means choosing a car with a lower price tag.
Choosing a Car That Doesn’t Suit Your Needs
One of the most important steps to take before you go car shopping is deciding what you must have in a car and what other features you want. Once you arrive at the dealership, you should have a general idea of what you’re looking for. Without this information, a salesperson is more likely to try to talk you into purchasing a vehicle that doesn’t meet your needs. In this situation, you are paying for something you will need to replace in the near future.
Not Having a Down Payment
Many car dealerships no longer require a down payment, which means you need to finance more. The more money you finance, the more interest you pay. With no equity in your new car, you will quickly find yourself upside down in your loan, which makes little financial sense. It’s best to put down between 10 and 20 percent, including the value of your trade.
If you want to take the stress out of car shopping, it’s important to familiarize yourself with the best ways to protect yourself financially. Working with a trusted dealer can help. However, it’s up to you to make sure you make the best financial decisions in the end.
If you’re looking for a trusted dealership to help you buy your next car, contact us. DeBoer’s Auto Sales & Service can help you make the best financial choice.
