Common Mistakes Buyers Make When Taking Car Loans

The "Loan Approved" SMS is exciting, but don't let it blind you. The biggest mistake buyers make is focusing only on the monthly installment. A 60-month loan looks cheaper per month than a 48-month one, but you end up paying significantly more in interest over the extra year.

Also, understand the difference between Flat Rate and Reducing Balance interest. Reducing balance is fairer as you pay less interest as you pay off the principal. Always ask for the "Total Cost of Credit" before signing. Know exactly what that car is costing you in the long run.