8 financial mistakes to avoid when upgrading your car

financialexpress.com:

Who does not like a new car with new features? Often when we plan to purchase a new car, the car features and technology are what we look at. However, we usually tend to ignore the financial aspect. If you are also planning to upgrade your car, you must keep in mind the financial factors and the maintenance cost.

Upgrading to a new car is an exciting decision that can enhance your driving experience. However, before diving into the world of car upgrades, it’s crucial to navigate the financial aspects wisely to ensure a smooth transition without burdening your finances.

Here are some financial mistakes to avoid when upgrading your car:

Car loans are a common way to finance a new vehicle purchase. However, not all car loans are created equal. Before committing to a loan, thoroughly research various lenders, compare interest rates, loan terms, and processing fees. Look for lenders offering competitive rates and favourable terms to save money over the loan tenure.

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Your credit score plays a significant role in determining your eligibility for a car loan and the interest rate you’ll receive.

Adhil Shetty, CEO, Bankbazaar.com, says, “Before applying for a loan, check your credit score and take steps to improve it, if necessary. A higher credit score can help you qualify for better loan terms, including lower interest rates, saving you money over the life of the loan.”

When upgrading to a new car, it’s tempting to opt for a more expensive model with additional features. However, it’s essential to set a realistic budget based on your financial situation and stick to it. Avoid the temptation to overspend, as it can lead