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Not knowing your credit score is a big mistake made by many new car buyers.
Very few people know there credit score, it’s such an important detail to know, whereas they will know their blood type and blood pressure. A credit score is hugely important because it controls the interest rate that you will pay on any loan when buying a new car. Don’t ever arrive at a car dealer without knowing what your credit score is because if the car dealer knows that you don’t know what it is, they could take advantage of you when working out the interest rate that you should pay on the new car.
If you still owe money on a used car don’t trade it in to buy a new car.
The reason for this is that sometimes, one your finance is approved on your new car, the car dealer does not pay off your car loan on time. They are often not bothered about your financial responsibilities. Basically, legally the car loan is still under your name until the new car dealer pays it off, therefore you must still ensure that the bank gets the car payments on time. What happens is that after you buy the new car, the new car dealer doesn’t pay off your car loan timeously, so the back will charge late fees. It is therefore advised, if you do go this route, to get the new car dealer to put it in writing that they will pay off the car within ten days, or as the bank requires. Don’t do the deal if the new car dealer refuses this option.
Getting a factory car from a new car dealer.
It is possible for a new car dealer to order a car from the factory if they do not have the car you want in stock. Some car dealers might try to pull the wool over your eyes and tell you that ordering a new car from a factory will cost you more than the cars in their showroom. It definitely doesn’t! It is ordered as part of their weekly/monthly buying order and does not cost them more. It’s always best to pay a deposit for the new car by credit card only, not by check. This is because sometimes when the car arrives they suddenly hike the price up by a couple thousand rands and tell you there was price increase whilst you were waiting for the car. This is easy to dispute on your credit card but not by check if they have already cashed it in. The lead time for waiting for your new car should be about six to eight weeks with no extra fees charged to you.
Buy a new car before your old one dies on you.
Remember that it can take two to three months to research, shop and negotiate to buy a new car. If you wait until your current car packs in before you start this process, you will feel pressurised into making uninformed decisions and buying a new car that is not a good deal for you. You must never tell a car dealer that you are in a rush to buy a new car. It is advised not to fix up your old broken car, just absorb the loss and take the cash you get for it and use it to buy a new car.
Visit www.imperialselect.co.za for quality new, used and demo cars
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