Car Financing Don’ts
Like homes, many of us have dream cars, from the cool convertible to the sleek sports car. We dream of the comfortable ride, the snazzy colors, and the beauty of the car. However, when it comes to buying a car, most of us have a budget that we need to stick to. It can also be extremely hard to stick to that budget when you do find the car of your dreams.
Shelton Used Cars in Woodlawn offers the best used cars in the area. Our certified pre-owned vehicles are offered at affordable prices. As a family-owned used car dealership that has been operating for over 40 years, we specialize in serving our community with the best customer service. We also offer used car parts for when you just need a replacement oil filter or brake pads. Below, we’ll go over some of the don’ts of car financing. Browse our used car inventory online today!
DON’TS OF CAR FINANCING
Don’t Have Your Credit Pulled at Every Dealership You Visit
While this used to be more commonplace than it is today, it still happens. Used car dealerships will attempt to get you to start buying a car before you are ready by having you fill out an application. Oftentimes, this application entails a credit check so that the dealer then knows your interest rate and what car loan you can afford. Don’t let this happen.
Every time your credit is pulled, it is recorded by the three major credit bureaus (Experian, Equifax, and TransUnion). The credit bureaus are the guys who determine your credit score. If you have too many inquiries, the credit bureau takes this as a sign that you are purchasing too many items. This goes against your credit score if you have too many within a certain time and can lower it, which is not what you want when you are searching to buy a new or used car.
Don’t Shop Around at Banks
In the old days, you needed a preapproval from a bank before you could buy a car. Nowadays, the dealer can pull your credit once and then they have a bunch of banks that they work with to get you the best rate. Sometimes, you will never have heard of the bank, but you can always request for the used car dealership to use your local bank for financing if you desire. Plus, truth be told, banks offer financing to make money. They all offer about the same rates for the same year of the car as every other bank nationwide, unless they are running a promotion.
However, some people still think they can get a better rate at a different bank. In truth, while that may be the case, you will only save slightly on your interest rate, and you’ll be spending extra time to do so.
Don’t Sign Paperwork You Don’t Understand
Car dealerships are required to explain to you the terms of the deal and have you sign paperwork that states the terms of the loan. This is true for any loan you receive from a financial institution. When you go to sign paperwork with the car dealership’s financing team, they will have all of the paperwork for you. This is your chance to make sure you understand the terms of your loan. The loan paperwork will list the price you would pay for your vehicle if you were to pay only the minimum payment for the term of the loan. That being said, prepayment penalties are rare these days, so you can pay off your vehicle sooner with no penalties if you wish.
The dealership should also have an itemized list of the fees you will be paying and all of the add-ons (extended warranty, etc) that should add up to the final purchase price of your vehicle. Review this list thoroughly to make sure you understand the fees and that there are none on there that you weren’t aware of.
SHOP SHELTON USED CARS IN WOODLAWN’S INVENTORY
As a family-owned used car dealer in Woodlawn near Mount Vernon for over 40 years, Shelton Used Cars has built a reputation for quality and customer service. We purposely have streamlined our used car inventory so that we can keep our used cars affordable. Rather than deal with a bank, Shelton Used Cars offers in-house financing programs that are faster than traditional bank financing. Our buy here, pay here car financing program will save you trips to the bank to pay your car loan. Instead, you can pay conveniently online here. We offer honesty, integrity, and transparency — which is rare in the used car business. When you partner with us, you can rest assured that you will be getting a great, reliable car that will not only suit your needs, but one that you will love as well. Contact us today to get started!
