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We All Love Cars. Every year, most of us spend money on auto loan payments. If you are eager to buy a car, be sure to follow S.M.A.R.T. tips. The tips will help you save money and make sure you don't go for exorbitant auto loans.

Follow the S.M.A.R.T. Tips and Save Money

When car buyers have to make a decision about auto loans, logic takes a back seat and emotions become a controlling factor. It's why car buyers say yes to financially damaging auto loans. To save yourself from the possibility of financial harm, you need to follow the tips.

S - Specific

The car is a great advantage. Therefore, it is essential that you understand your requirements before buying a car. It is important that you have a specific image of the type of car you want. It will help you stay away from an impulsive purchase. Consider the list of the following factors because it will help you choose your Perfect Car.

1. Total number of passengers

2. Gearbox - Automatic or manual gearbox?

3. Load capacity

4. Vehicle performance

5. Driving conditions

6. Gas mileage

7. Security features

8. Technological characteristics

9. Parking space

M - Money

Remember that even if you opt for a car loan, you will need to make a down payment of at least 10 percent of the total price of the car. The down payment is beneficial because it helps reduce the loan amount. If you don't have money for a down payment, don't worry. You can trade in your old car and ask the dealer to deduct its value from the price of the new car.

A - Affordable

Selecting a specific car won't do you any good if you can't afford to buy it. Remember that car expenses are not limited to the down payment. You will have to pay money for monthly loan payments, fuel charges, and living expenses. A general rule of thumb is to allocate no more than 20 percent of your total monthly income for car-related expenses. Keep this rule in mind and choose an auto loan that does not exceed your budget.

R: Reliable

There was a time when car buyers applied for a car loan only with the local bank. Today, there are several ways to get a car loan. You can apply at a bank, credit union, or auto finance company online.

Regardless of which option you choose, you need to make sure that the lender is trustworthy. If you opt for an online car finance company, check the website's safety certificate. If the website doesn't have one, stay away from it and avoid potential identity theft.

T - Time

Car buyers fear buying fees because they believe multiple credit inquiries will hurt their credit score. But, don't refrain from buying fees, finish it within 30 days. Why?

A time-bound search for an auto loan will ensure it doesn't hurt your credit score. FICO does not consider inquiries made in the 30 days prior to qualification. So if you can get a loan within 30 days, it won't affect your score. This time period can change to 14 days if the lender uses older versions of FICO and can increase to 45 days if the lender uses the newer formula.

Buying a car is one of the most expensive purchases Americans make. If you don't pay attention to your car loan, you could make the worst financial mistake of your life. Therefore, avoid making a bad decision and follow the S.M.A.R.T. tips.