Cars are a necessary part of life in most places in the United States. Unless you live in a city with easy access to an excellent public transportation system, you’ll need to rely on a car for practically everything, from running errands to getting to and from work. Cars can be expensive, though, so many people rely on auto loans rather than paying a large lump sum to buy a car outright. Your financial advisor in Orlando can help you figure out how much car you can afford so you can get a car without breaking the bank.

Here are some common auto loan mistakes you should avoid.

#1: Failing to Check Your Credit Score

Your credit score plays a major role in the type of car loan you can take out. I can also affect the terms of that loan. If your credit score is too low, then you might not qualify for an auto loan at all and even if you do, the interest rate you can get might be really high. Checking out your credit score before you go car shopping will give you time to try to correct any issues and improve your score so you can get a better loan.

#2: Not Calculating How Much Car You Can Afford

If you take out a loan to afford your car, you’ll need to make sure that you can pay it back. It’s easy to get caught up in buying a new car when you aren’t paying for it all at once. Many people don’t take the time to calculate exactly how much they can afford to pay in monthly payments and end up with loans they might not actually be able to pay back. You’ll need to figure out exactly what you can budget for each month so you don’t have to worry about missing payments.

#3: Waiting to Look at Loan Options Until Purchase

Another common mistake is waiting until you’re actually buying the car to look at your loan options. If you can get pre-approved for a loan, you’ll have the opportunity to shop around for better loan options. The loan that you’re offered at the auto dealership on the day of purchase may not have terms that are as favorable to you as what you might be able to find on your own.

#4: Accepting the First Auto Loan

Even if you’re getting preapproved ahead of time, it’s important to not just accept the first loan that you’re offered. Take the time to shop around. You might be able to find an even better deal if you keep looking.

#5: Taking out a Loan That’s Too Long

While a car is a major purchase, it’s also not necessarily a long-term one. After a few years, you may need a new one. If the terms of your loan are too long, then you could still be paying for an old car that you no longer have, even as you’re paying for a new one.