Five things to check before taking out a car loan

With the arrival of the pandemic, the market demand for cars, both used and new, grew notably, due to the need to isolate themselves and the danger of using public transport. Although the measures against COVID-19 were reduced and were no longer so rigorous, the buying trend continued to rise.

The most common thing when buying a vehicle, among Colombian consumers, is to finance part of its value and the other to pay for it with capital, a reason that leads them to acquire a credit product.

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For this reason, here we share a ‘check list’ or verification list, so that you take into account before getting into a “mad cow” with any financial entity.

1. Project your dues

According to the Bellpi platform, one of the most important factors to take into account before making a request of this type is the number and value of installments that it can assume, according to its financial statements. There are different credit simulators on the web, with which you can understand how much of your money you should allocate monthly to cancel the capital value, interest, insurance and others.

2. Find out if you have any ‘pre-approved’

If you are interested in a particular vehicle, but you do not know exactly how much your bank could lend you, it is best to find out which entities offer you a pre-approved loan. The value of this will be able to guide you on what possibilities you have to pay for the vehicle you want.

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3. Know your credit score

One of the most important points to review before applying for a loan is the credit rating, since the value that the bank will be able to lend will depend on that score and also the possibilities that they will accept your credit. The ideal is not to have any negative reports.

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4. Analyze the financing offered by dealers

Dealers generally offer different ways to finance a vehicle. Either with a bank or with the same company that sells the car. It is better to compare the interest rates, terms and other benefits offered by each entity, as it could have special offers and even great discounts.

5. Choose the desired specifications

Before making an emotional decision and going for a vehicle purchased with credit, it is better to analyze its equipment and characteristics, since many times it may not fit your needs and it could be much more expensive or you could regret it.. It is best to go to the landline and avoid headaches.

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