You Should Do These Before Getting a Car Loan

Buying a car is a big decision, so make sure you do these first!

By: Edwin Allan Diaz | June 18, 2020

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Is buying a car really an investment?

Before heading out to your nearest car dealership, think about why you’d like to get a car loan. One of the reasons people buy a car is to have their own means of transportation instead of relying on public vehicles. This is especially true when you are a family or group who travels frequently. But before you go and seal the deal, it pays to think things through and decide carefully. Here are three things you must do before getting a car or applying for a car loan!

1. Do your research

Online car forums can be useful resources!

Once you apply for a car loan, you must know the documents being requested of you. This can be done by going online and checking auto loan forums and interacting with the people there. Ask them about what sacrifices they committed just so they could pay for the monthly installments.

After learning their stories, analyze whether their life after committing to monthly car payments changed for the worse. If things did go south, ask them what went wrong and ask for professional tips. But don’t make scathing remarks about their inability to pay their monthly bills.

2. Know what car you truly need

Do your research diligently.

The initial screening process of loan companies involves a query of your chosen car brand or type. For this, remember to buy something you truly need. If the car is for a family of six, don’t buy a sedan since you and your loved ones will get cramped. If you have a big family, select a slightly larger vehicle to fit everyone, even if the payments can be steep. Don’t bother buying a car that causes discomfort, even if the down payment is low.

3. Do it for all the right reasons

Showy cars may be tempting, but is owning one your only motivation?

Whatever your purpose is for getting a car loan, make sure you know what your money is getting you. If you are loaning because you want to be a driver of a ride-sharing vehicle, follow the mentioned steps in this article. If you need a car for work because commuting consumes a lot of your time and energy, loan a vehicle that has the best fuel economy, brakes, and safety systems instead of the shiniest one.

Regardless of the plan the company gives you, it all boils down to who, what, where, when, and why. Who made you decide to get a car loan? What is the purpose for filing a loan? Where will you bring the car? When will you finally pay it off completely? Why are you doing this? If you could answer all of them confidently, then you’ve made the right choice.

Note: This article was originally published in Yoorekka on May 31, 2017

About Edwin Allan Diaz

Allan is a freelance writer from the Philippines. He has written for various media outlets in and out of the country after graduating from the University of Santo Tomas with a Bachelor of Arts Degree in Journalism. He would play computer games and perform music together with his bands during his spare time. He has a bucket list that he wants to fulfill, including going around the world on a bicycle and performing in a gig once a day, for 365 days.

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Disclaimer: All articles in the Consumers Magazine of Yoorekka are for general information and entertainment purposes only. Although careful research has been made in writing them, Yoorekka does not make any warranty about the completeness and accuracy of all information presented in our articles. Our content is not intended to be used in place of legal, medical, or any professional advice.