WARNING PARENTS – this article is written for the kids and contains current “slang terms”. If you are unable to decode them, we recommend asking your child(ren).
No one wants to make mistakes, especially when it comes to borrowing money and building credit.
FEAR NOT, we’ve got your back, because when it comes to lending money and giving advice about finances, Trademark is the G.O.A.T.!
We’re spilling the tea on common mistakes to avoid when borrowing for your first auto loan.
Number 1: Don’t borrow more than you can afford
We all know how much cooler it would be to drive around with the squad in a pimped-out Jeep, but you’ve got to be realistic. You don’t want to spend your whole paycheck on your car loan! Take some time before looking and think about what you can really afford each month. Look at your paycheck each week, then multiply that by 4 (weeks in a month) to get your gross monthly income. Then, you want to subtract out any other important bills you are paying (phone, rent, groceries, etc.). After that, you can get a better idea of what you’ve realistically got left over to spend each month on your ride. If you’re having a hard time with this, don’t forget that any one of our Trademark Loan Officers would be more than happy to sit down with you and help you figure out exactly what you can afford – that’s what we’re here for!
Number 2: Don’t rush into a purchase
Buying a car is a big deal! Take your time, research different types of cars to find the right fit and most importantly, don’t let anyone rush you into making a fast decision. Dealers may try to scare you by saying things like: “this car may be gone tomorrow!” – and you know what? That might be true, but remember this: thousands of cars are made every day and people trade-in used cars all the time. There will be the perfect car to fit your needs. Check out Trademark’s Auto Buying Center if you don’t believe us – there are a ton vehicle options in your area!
Number 3: Don’t forget to get pre-approved
You figured out your budget, you researched cars in your range and now you’re ready to hit the dealership – whoa, pump the brakes, bruh!! First, you want to go into your financial institution (aka Trademark), call or apply online to get pre-approved. A Loan Officer will work with you to help get you the very best rate, while giving you the ultimate negotiating power when you go into the dealership. Getting the best rate by paying one or two percentage points less, can add up to hundreds of dollars over the life of your loan.
These are just a couple pointers to help you when you’re ready. Don’t forget that Trademark has a First Time Borrowers program designed especially for someone with no credit, who is trying get their first car, and work on building their credit. Give us a call, shoot us an email or stop by, we’ll tell you all about it! Click here for our contact information.
Written by: Melissa Goode