5 Mistakes To Avoid When Upgrading Your Car

Outlook Money

Smart decisions save money and reduce the stress of high payments and unexpected costs, and here are five tips to achieve that while upgrading your car.

Neglecting Loan Comparisons

Failing to compare interest rates and loan terms can result in higher costs. Buyers with better credit scores are more likely to get loans at lower interest rates. Always review the fine print for hidden fees such as processing charges, foreclosure penalties, and late payment fees.

Resale Value and Mileage

Not considering a car's resale value and mileage can affect long-term costs. Research popular models with high resale values and consider the benefits of fuel efficiency or switching to an EV.

Down Payments

Not making a substantial down payment increases the overall cost of the loan. A higher down payment can reduce monthly installments and the total interest paid over the loan term.

Maintenance and Other Costs

Ignoring additional costs such as insurance, registration, taxes, and maintenance can strain your budget and choose a car with manageable expenses.

Research and Test Drives

Visit multiple dealerships, test-drive several models, and spend sufficient time assessing each car before making a final choice.

Compiled by Priyanka Debnath