Home » News » Miscellaneous » Traps to look out for when getting a car loan
Getting a car loan is exciting. It means you’re on your own journey to getting on the road in a vehicle that you want. It’s important to remember though that there are a few things you need to consider before you agree to a car loan and some great steps to take to fully prepare you for the commitment.
 
Car Loan Traps
 
• Don’t buy your car before you’ve got your loan
 
This is a real instance where it pays to be patient. Too many people rush into buying their dream car, and then consider getting a loan afterwards. Always make sure that your loan is completely sorted out before you even start to look at cars. You need to understand exactly how much you’ll be able to spend on the car and you’ll only know this when you have pre-approval on your loan
 
• Do your sums
 
With car loan calculators everywhere, it’s never been easier to figure out how much your repayments are going to be and to work out exactly how much you can afford. You need to do some budgeting before you get a car loan so make sure you’ve worked out exactly what your incoming and outgoing costs are each month and how much you can dedicate to paying back a car loan
 
• Watch out for advertised rates
 
It’s easy to spot an advertised rate online and sign up to that car loan as quickly as possible. What you need to be looking at is the comparison rate – this can often be very different and will make a huge difference to the amount that you pay in interest over the course of the loan.
 
• Ask about hidden fees
 
This is something that many car loan users often find out too late. If you’ve got a really low interest car loan or a deal which you thought was too good to be true, chances are that it is. Hidden fees can really throw up problems further down the line especially if you want to repay your loan early.
 
• Don’t add a car loan to your home loan
 
Some people are tempted to add a car loan to their home loan using a redraw facility or line of credit. Sometimes this provides you with a lower interest rate but you need to think carefully about the loan terms – generally these are much shorter on a car loan than they would be on a house loan so it may not work on to be a financially helpful option.
 
Do Your Research
 
The best thing you can do is to do your research and take your time. Getting a car loan is a big commitment and a huge investment financially so it’s important that you know everything possible about the agreement you’re entering into, before you’re in it.
 
Don’t wait until it’s too late as you may not be able to get out of your car loan once you’re in it. Take your time before you purchase a vehicle to make sure that everything is in the best shape possible.

Related Articles

Leave a Comment

Fields marked with * are required
Name *:
Email *:
Comment *:
Code *:
  CAPTCHA
  • Email
  • YouTube
  • RSS
  • Twitter
  • facebook
  • feedburner

Related Specs

  1. 2010 Ford Mustang

    Engine: V8, Power: 315 hp @ 6000 rpm, Torque: 325 lb-ft @ 4250 rpm
  2. 2009 Nissan 370Z

    Engine: VQ37VHR Variable Valve Timing NA V6, Power: 332 bhp @ 7000 rpm, Torque: 270 lb-ft. @ 5200 rpm
  3. 2010 Bentley Azure T

    Engine: Twin Turbocharged V8, Power: 500 bhp / 507 PS / 373 kW @ 4,200 rpm, Torque: 738 lb ft / 1,000 Nm @ 3,200 rpm
  4. 2009 Porsche Cayman

    Engine: 6 Cylinder Horizontally Opposed "Boxer", Power: 320 bhpN/A
  5. 2006 YES Roadster 3.2 Turbo

    Engine: V6, Power: 355 bhp (261 kW), Torque: 358 lb-ft (485 Nm)

New Vehicles

Hyundai i30 N Line starts at £21,255 in UKHyundai i30 N Line starts at £21,255 in UK
After a long wait, Hyundai is finally making the most of its new N Performance division. The South-Korean manufacturer has officially announced the pricing ...

Concept Cars

Toyota unveiled the Supra TRD ConceptToyota unveiled the Supra TRD Concept
A few weeks ago we have seen the all new generation Supra A90. Now, the Japanese sports-coupe has received a special version thanks to the in-house performance ...

Custom Cars

ABT Cupra Ateca offers more powerABT Cupra Ateca offers more power
Just introduced on the market during this fall, the new Cupra Ateca already benefits from a tuning package created by a german tuner. It is well known ...

Future Cars

Ginetta announces new supercarGinetta announces new supercar
The supercar market is still very attractive with many niche manufacturers announcing products that rpromise to go fast and drive fantastic. Ginetta is ...

Market News

Mitsubishi L200, the most popular pick-up sold in UKMitsubishi L200, the most popular pick-up sold in UK
The UK market is not showing much love for the pick-up market. But when it does that, one of the most popular car in the segment is the current generation ...

Gadgets

New NissanConnect available for Nissan MicraNew NissanConnect available for Nissan Micra
Along with the introduction of new engines, Nissan is also making sure the Micra receives an important update when it comes to technology. Nissan’s ...

Various News

Vauxhall Combo Van and Life get new range of accesoriesVauxhall Combo Van and Life get new range of accesories
Vauxhall wants to offer more opportunities for its UK clients and readies some accessories for the Combo. In both its variants, the Life and the Van. ...

Motorsports

Nissan replaces Renault in Formula E competitionNissan replaces Renault in Formula E competition
There is still shock as Renault decided to end its activity in the Formula E competition. But there is also hope for a competitive follower. It Alliance ...

Videos

2020 Volkswagen Jetta GLI - first teaser video2020 Volkswagen Jetta GLI - first teaser video
Volkswagen will unveil a new Jetta GLI during the 2019 Chicago Motor Show. Until the doors will be opened, the German car manufacturer decided to publish ...