Purchasing a vehicle is no small investment. It requires weeks to months of planning and setting aside a budget. The Chevy financing team at Charles Clark Chevrolet understands this and wants to make the process as easy as possible for our buyers. Having worked with countless car buyers of varying demographics, here are the common mistakes we have noticed over the years.
Paying the Minimum Down Payment
Many car buyers pay the minimum down payment required, which is usually around 10 percent of the manufacturer’s suggested retail price (MSRP). However, it’s best to go for a 20 percent or more down payment. The more you pay now, the less you pay later in monthly payment installments.
Settling for a Longer Repayment Plan
Repayment plans can be anywhere between 24 to 84 months. Car buyers often settle for the longer repayment terms to bring down the monthly cost. However, the longer the payment plan, the more you’ll end up paying in interest.
Not Checking Your Credit Score
Some car buyers don’t check their credit score and are surprised to find that their score is lower than anticipated when a hard credit pull is performed at the dealership. We recommend checking your score at least three months in advance to give yourself time to get the score up if needed.
Not Budgeting for Total Costs
Some buyers forget to budget for other related costs beyond the vehicle’s base cost. This includes the sales tax, title fees, registration fees, and more. Remember to factor these additional variables.
Not Reading the Finance Contract
Don’t just skim the contract. Take as much time as you need to read it thoroughly and ask the dealer any questions that come to mind. The contract contains important finance-related details, such as late payment fees, interest rate, and loan term.
Get Chevy Financing Assistance in McAllen, TX
To avoid the common financing pitfalls, speak to our financing department at Charles Clark Chevrolet. We work with car buyers of all financial backgrounds and diverse credit standings.
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