Buying a new vehicle is exciting, but nothing will take the air out of your tires faster than discovering you overpaid or didn’t get the best interest rate. Matthew Cook, Financial Center Manager with Fifth Third Bank, shares strategies to help avoid the most common car-buying pitfalls:

Intertwining vehicle price and financing
A dealer may combine different parts of the auto-buying deal, which can confuse the buyer. For example, a dealer may say, “We’ll give you an extra-low price on the vehicle, but this is the best interest rate we can offer you.” Avoid falling for this by treating the auto-buying process as two separate negotiations: vehicle price and financing. First, negotiate the price of the vehicle. Then, after the price has been set, move the discussion into financing options.

Extending financing past 60 months
Many people select a new vehicle based on the monthly payment. While you need to find an option that fits within your budget, be wary of deals that get you the payment you want by extending your financing past 60 months. You may end up paying more in the long run due to extra interest paid over time. Additionally, vehicles depreciate in value and the longer you finance them, the greater your risk of owing more than they are worth. A better strategy is to focus on getting the lowest interest rate. “There are things we can do to help you get the monthly payment you need, without extending your financing,” says Cook.

Rolling an existing loan into a new purchase
If something sounds too good to be true, it probably is. Some dealers may tell you they will pay off your loan, no matter how much you owe, but ultimately you’ll pay for it in the end. “In these situations, the dealer rolls the amount you owe into your new loan, which means you owe considerably more than your vehicle is worth from day one,” says Cook. If this is your situation, contact your financial institution. For example, at Fifth Third Bank, financial professionals are available to discuss which financing options are right for you.

Buying the vehicle before credit approval is final
Many financing contracts are subject to credit approval, which means you’ll only get the rate and monthly payment you were offered by the dealer if your application is approved. If you’re not approved, your interest rate and payment will likely be higher than you were expecting. To help ensure you don’t end up with a vehicle you can’t afford, always ask if the credit approval is final, before driving off the lot. Or, consider financing through your financial institution, where everything is considered final after you’ve signed the papers.

At Fifth Third Bank, financial professionals are available to help guide you through the auto-buying process so you get the right vehicle and financing for your situation. “It pays to work with someone you already trust and have a relationship with,” Cook says. “We care about your needs beyond buying a vehicle.”

To learn more about avoiding car-buying pitfalls, contact Fifth Third at (866) 475-4201 or visit 53.com.

All loans subject to credit review and approval.