3 Common Auto Loan Mistakes We Make – Miami Lakes Automall Dodge

November 19th, 2014 by

If you are shopping around for a new Dodge, we, at Miami Lakes Dodge, would like to be your destination. Whether you are looking for an efficient sedan like the Dodge Dart or a versatile crossover such as the Dodge Journey, we have the vehicle for you.

Where we differ from other Dodge dealers in Miami is we place our sole focus on earning your trust. Simply, we want to be a valuable resource in your vehicle buying process. To assist you in this, we would like to offer some tips when it comes to auto financing.

If you plan to receive a loan for your next Dodge, there are certain things you should consider before doing a loan. These are common mistakes many of us have had over the years. By steering clear of these things, it can help you save money on your next car loan.

Failing to Check Credit Reports

As exciting as it is to shop for a new Dodge, part of your homework should be to assess your credit situation. Check each of your credit reports for negative or incorrect information. If you have a past due account, get the account current before applying. Moreover, by checking your credit ahead of time, you’ll understand which type of financing you’ll likely receive at the time of the loan, which can help you budget the right amount.

Failing to Make a Good Down Payment

While we understand that everyone won’t be able to do this, it’s a good idea to try to put down at least 20% of the purchase price of your Dodge as a down payment. The reason for this is when you put down a high amount, you finance less. This will save you money as you won’t have to pay as much in interest. It can also offset the fees and depreciation of your Dodge during its first year.

Failing to Protect Your Investment

In the event you cannot pay a sizable downpayment at the start of the loan, it’s imperative you opt for coverage such as GAP. With GAP, it can give you the financial protection you need in the event of an accident. If an accident totals your Dodge, your insurance provider will only pay the fair market value of the vehicle. This means if you owe more than your vehicle is worth, you’ll need GAP to pay the difference or else you’ll have to pay.

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