5 MONUMENTAL Mistakes Almost Everyone Makes When Buying a Car

Prevent these car buying pitfalls – avoid these costly mistakes!

Before going into a dealership, establish your overall budget. DON'T focus on the monthly payment. Focus on the total amount of the final car price.

Usually, car buyers focus on the monthly payment – what he or she can fit into their overall budget without eating ramen noodles for the next five years. This may seem like a good idea, but in reality, it can be a trap.

For example, you tell the car dealership you can afford a $300 monthly payment and the dealer says, “No problem!” Next thing you know, you’re driving away in a beautiful, shiny sports car, BUT, because the overall cost of the car, you’re now stuck paying $300 for a very long time due to long-term financing. The end result? You’ll end up paying MUCH more for your car.

Check your credit scores from the big 3: TransUnion, Equifax and Experian.

Your credit scores determine the interest rate you get from lenders. In turn, that interest rate determines your monthly payment – in other words, your purchasing power. Higher scores qualify you for lower rates – meaning you can buy a nicer ride without raising your monthly payments.

Overestimating your overall budge

One of the biggest mistakes people make when buying a car is not determining an overall budget. Most lending experts agree you can spend between 28 and 36 percent of your gross monthly income on all of your monthly debt payments. This is called “total debt service,” and means your car loan, mortgage payment, credit card and other loan payments shouldn’t exceed 36 percent of your monthly income.

Fail to shop around for the best deals and price.

Many buyers see the car of their dreams on a lot and make a buying decision before exploring other dealership options. Always be sure to check out several dealerships before signing on the dotted line, and if a salesperson knows you’re looking, he or she will go out of the way to give you the best offer price. This is very useful information to have when you shop around, giving you a leg up in negotiating power.

Not waiting until the end of the month – or even better, end of the year – to purchase a vehicle.

The car business is based on individual sales performance, and typically, end of month and quarter car sales ensure they stay employed or earn that extra bonus. Even better, at the end of the year, manufacturers, dealerships and salespeople are hungry to sell every car possible to hit yearly goals, so many dealerships offer big discounts, ensuring you get the most bang out of your buck.

Take control of your credit and find out your credit score, now! Fast, easy and secure, ScoreSense gives you the power to know how you may look to lenders before you walk through the door. Get your score, today!