Watch Out For Common Mistakes When Looking For Financing

Blog Mar 26th, 2025

Mistakes To Avoid When Financing A Car

Financing a vehicle can be one of the most difficult parts of the car-buying process. Over the years, our team has noticed a handful of common errors that happen when people come to our business. We’ve isolated the three mistakes to avoid when financing a car. Hopefully, these will guide future or returning Davey Auto Sales customers in the right direction. Let’s see what our team came up with.

Consider Financing Options Early

Even before someone picks out the vehicle they want to buy, they need to consider the financial implications. That means getting a budget together, checking your credit score for errors and looking at available financing options for lenders.

Furthermore, if you have the means to get pre-approved for a loan, that could really help make things easy when it’s time to look at what’s available at Davey Auto Sales.

Too Much Focus On Monthly Payments

When you’re looking for a vehicle to buy, it’s very important not to get too focused on what the final sale price will be, because that’s not the only cost to consider. When applying for a loan, you will need to account for interest, ongoing maintenance, unexpected repairs and regular savings. Also, signing up for a longer loan term might make the monthly payments look lower, but you’ll end up paying more in interest.

Avoid Negative Equity

Depreciation is an unfortunate and largely unavoidable fact of life in the automotive world. Negative equity occurs when someone owes more on a loan than the vehicle is currently worth. Some buyers will roll that negative equity into the loan of their next vehicle, almost instantly putting them upside down. If possible, make sure your first car loan is fully paid off before buying the next car.

If you have any questions about finding the best deal possible on a safe and reliable pre-owned car, truck or SUV, make an appointment with a Davey Auto Sales product expert today.