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Published on December 23rd, 2014 | by Pete


Don’t Get Burnt On Financing Your Next Car – Four Things To Be Wary Of

Buying a new car is a pretty exciting time in your life. No matter how old or young we are, the thought of a new car temporarily takes over our lives, every moment of our day spent imagining the feel of taking the new vehicle down the highway. Unfortunately, the excitement can make us a little less observant of things going on around us – including the terms of the car finance deal the sales person is pushing with one hand while handing over the keys with the other. Sure, you’ve got your dream car but how much monetary pain is it going to cost you to keep it? Before signing on the dotted line, consider these points.

Is This The Cheapest Car Loan Rate Possible?

Some people don’t realise that just because you are buying from a particular dealer, you don’t have to accept their car loan offer. Don’t sign on the bottom line until you know what rates are available elsewhere. Do a little research before you actually go in to look at the car you want to make your own. If you are not satisfied with the terms on offer, look elsewhere. Consider a car finance loan sourcing company like Dreamloans to get a better idea of what loans are available. You could also buy the car outright or refinance through an existing bank loan or a personal loan.

Are There Any Hidden Charges?

Make sure you read the agreement thoroughly for any hidden charges in the contract. For example, a loan might include a clause requiring significant additional payments to leave the loan early. This means you could end up paying substantially more than the sale price of the car should you find a little extra cash and pay off the loan before the agreed period. Bring a friend to read the contract with you. You might not be able to avoid all hidden charges, but at least be aware of them.

Is The Overall Loan Structure Suitable?

Make sure the written terms and conditions are suitable to your needs and circumstances. Know when you are expected to pay and if there are any milestone conditions that might save you money or cost you extra if you fail to meet them. Make sure you fully understand what each clause means and what the repercussions will be if something goes wrong and you can’t meet them.

Avoid The Rushing Salesperson

Don’t be rushed by a sales person who seems to think the deal needs to be done in record speed to be valid. Resist if your sales person comes up with yet another excuse for you to sign before you are ready.

The fact is it is you who is taking all the risks in the transaction and you are entitled to take as much time as you want to consider all the pros and cons of the finance agreement on offer. If the sales person continues to push you to sign before you are ready, ask for another staff member or walk away. There will always be another car but your financial reputation might be harder to restore.

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