Finance Tips: What Not to do Financing a New Vehicle

If you’re getting ready to meet with the Nissan financial department here at Zeigler Nissan of Gurnee, there are a few dos and don’ts to be aware of. Let’s take a closer look at a few things that you probably shouldn’t do when you’re financing one of our vehicles.

Make a Low Down Payment

Putting no money down can seem like a good idea, but outside of some promotions this move could come back to bite you. When you don’t put money down, you’re taking out a larger loan.

A bigger loan means more interest paid out over time. We recommend putting down 20 percent when you buy a new vehicle.

Get Blindsided by Your Credit Score

What kinds of terms you can secure for your new car loan are largely determined by your credit history and score. You should know your credit score going into the Nissan financing process.

Get a credit report of your own and make sure that there are no discrepancies on it, and do your best to pay down small debts or deal with other things that could hurt your chances of getting a loan.

Go Above Budget

A new Nissan car is a big financial responsibility, but you never want it to be one that stretches your monthly budget and causes a ton of stress. Figure out a budget and what kind of monthly car payment will fit into it before you buy a new vehicle.

Forget About Other Ownership Costs

You also need to remember other costs of ownership aside from the car payment. Don’t forget to factor in maintenance costs, insurance premiums, and how much you’ll be spending on fuel.

Go For the Smallest Monthly Payments

It can be tempting to stretch out your loan term to make the monthly payments smaller, but this can be a bad plan. This move can mess with your perception and pile on the extra interest, resulting in you spending far more money on a car than you expected to.

If you want to learn more about our financing options, visit our Nissan dealership serving Libertyville, IL. We’re ready to answer all of your questions.