Four Must Do's Before Getting That Used Car Loan

Jan. 29, 2010 - PRLog -- Before you sign those papers for your used car loan (http://www.crestcarloan.com) there are a few things you have to do to make sure that your new investment will not turn into a money pit. Buying a used car can save a lot of money, but if you do not do your homework, it may cost you more than you bargained for. And the loan you take out to buy the used car will need to be repaid either way. So safeguard yourself:

First, do research. There is no excuse not to. Ask people, read newspapers, browse the internet- all this will provide you with useful information on the different makes and models of cars, gas consumption, maintenance costs, prices of spare parts, etc.

Second, Once you've found the type of car you want, locate it in a used car dealership, and check out the car's history. A car that was at the bottom of a lake or was involved in an accident is more than likely to have future problems that you do not need and likely can't afford. No one wants added financial burdens when still making monthly payments on a used car loan.

Third, do not just take what you are told by the car dealer as the gospel truth. Check out the car yourself. It would be useful to have a checklist of the things you want to ensure are in working order or better yet, have an independent mechanic give it the once over. This will give you a general idea of the condition of the car and any future repairs it may require. It will also prove useful in bargaining down the price of the used car if the repairs amount to a substantial amount. Knowing the true value of the car helps in lowering the amount of used car loan you will need. This eventually translates to a smaller debt.

Fourth, after you have covered all your bases and have settled on the car, decide whether you can really afford the car. Be aware of the fact that not only will you have a car loan (http://www.crestcarloan.com) to repay each month, but also that owning a car comes with other expenses like fuel, regular maintenance, and car insurance. Do the math -will the car be too expensive in the long run? Once you figure out whether your budget can take the strain of a new investment, then you can go out and get the loan to buy it.

Remember, it's important to cover all your bases before you get a used car loan (http://www.crestcarloan.com) in order to prevent unnecessary expenses that will add to the financial burden of loan repayment.

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