4 Financing Mistakes When Buying A New Car In Aurora, CO

Buying a new car is an exciting experience, but it can also be challenging, especially when it comes to financing. Many buyers make common car financing mistakes that can impact their budget in the long run. Let us walk you through four key mistakes to avoid when financing a new car at a Chevy dealership in Aurora, CO.

Not Checking Your Credit Score First

Your credit score plays a major role in your financing options. Before heading to an Aurora Chevy dealership, check your credit to know what offers you might qualify for. A higher score can help you secure better rates and terms, while a lower score may lead to higher interest rates or fewer options.

Take steps to improve your credit score before applying for financing, especially if you get a low credit rating. Paying down existing debt and taking simple actions like correcting any errors on your credit report can help increase your score in a short time.

Focusing Only on Monthly Payments

It is easy to focus solely on a monthly payment when looking for car financing. However, this can lead you to overlook the full cost of the car, including the interest you will pay over time. Sometimes a lower payment means a longer loan term, which results in more interest paid in the long run.

Instead of just looking at monthly payments, factor in the overall cost of the loan. Consider the interest rate and the loan term when making your decision. A slightly higher payment might save you money in the long term.

Not Shopping Around for Financing

Many buyers make the mistake of only considering the financing offer from the dealership. While your Aurora Chevy dealership may offer competitive rates, it is still worth shopping around for other options. Banks, credit unions, and online lenders may have lower interest rates or better loan terms.

By comparing different loan offers, you can secure the best deal possible. Take your time to understand the full loan terms and make sure you are getting the best interest rate. This way, you can avoid overpaying for your car.

Ignoring the Importance of a Down Payment

Making a down payment is one of the easiest ways to reduce the amount you borrow. Many buyers commit the mistake of not saving enough for the vehicle's down payment, resulting in higher monthly payments. A larger down payment reduces the total loan amount and can help you secure better financing terms.

A bigger down payment also lowers the chances of being "upside down" on your loan, where you owe more than the car is worth. Aim to put down at least 10% of the car's price to make your financing more manageable.

Get the Right Financing at Bozarth Chevrolet

At Bozarth Chevrolet, we understand how important it is to get the right financing for your new car. With our extensive selection of new vehicles and expert financing team, we are here to guide you through the process. Contact us today to check out our new inventory and find the perfect car with the right financing terms for you.