Buying a car is one of the largest payments you will make. If you have managed to get a car loan despite your low credit score, take care that the final amount you pay does not contain expenses that you don’t need. Here are a few things to watch out for when deciding on the financing for more than just your car.

1. Terms of the loan

No matter what your financial situation, you can always negotiate the interest rates and payment plans to suit you. Make sure that the terms of your loan are clearly specified on your contract, especially with regard to changeable interest rates, prepayment penalties etc. Make sure you do not sign for any ambiguous clauses such as ‘subject to approval or financing’ statements.

2. Extended warranties

You can get your hands on extended warranties even if you are getting your car financed. Often, dealerships will have special extended warranties on offer with the car you are buying.

3. Insurance

Your financial options also help out with the insurance. The insurance you get will suit your needs and just because you are buying car on credit does not mean you can’t push for good insurance rates.

4. Stick with the Dealer for additional work

You may have a lot people advice you that it is better get the additional work done on the car at the local garage. Work out with the dealership the various modifications that you want. Since you have a working relationship with dealership and using financing options, they will have good offers for you on the table. In the long run, you will get a complete package which will be cheaper compared to going to an outside garage.

Many people who take credit to finance a car assume they don’t have a lot of options apart from buying the car. This is not true. Terms of the loan, warranty, insurance, etc. are still under your control and you can get financed for them.