Taking a Car Loan Know the Dos and Don’ts…


You love them. I love them.

And we are going to love them more if we’re looking to buy them in a few days.

Purchasing a car is one of those dream projects. I would love the idea of getting another car in my garage (sadly, my wife wouldn’t allow me unless the previous car gets unusable). Owning them makes you feel like a King.

You can make this feeling even more advanced towards you with the help of a car loan.

If you speak with direct lenders in Ireland, then you will find that car loans come in a variety. We can use them in a more useful sense when we learn about them even more.

And so, I will advise you to learn more about your loan than your car. Of course, you need to know more about the car you purchase.

But inform yourself about the loan too. Of course, direct lenders are going to help you in this process. With them, it becomes your responsibility to know more about these loans before considering them for your new vehicle.

Or a used vehicle…

I penned (actually typed) down this blog just for that purpose.

What Are the Things You Should & Shouldn’t Do for a Car Loan

When considering the dos and don’ts of a car loan, there are many things that come into play.

Remember, the loan you are taking out depends on more than one feature.

Your loan process comes before knowing about the car.

Do you know what I will recommend?

I can tell you something.

Research more about the car loans at first and then go for choosing your car.

Or else, you can distribute the job to two individuals. You can invest your time in the research part where your friend can learn about the loans. Be sure to make good communication after both of your studies are done.

Here are the dos and don’ts of the car loan that we don’t want to miss out on.

The Dos

When you want to take out a car loan, there are definitely things that you should do before going for the deal.

I listed three of these important tasks below:

·         Check Your Credit Score

It is imperative that you take out a car loan after you have made sure your credit score is checked and updated.

According to Experian, there are two kinds of credit scores. One is noted as a bad one, while the other is a very bad/ really poor one.

You have to understand how Experian defines these standards. Based on these standards, your lender will decide on the perfect loan option for you.

Ask your credit card provider to make a detailed analysis of your credit profile and transactional data to send you an updated report. Once received, cross-check the report manually by yourself to nullify the possibility of mistakes in it too.

·         Know about Your Car in Detail

The car and pits facilities define its price. And your knowledge about those facilities defines your budget.

Your decision on the budget is going to reach your lender. So, being confirmed about the loan quote is also mandatory.

Some dealers might offer add-ons and price hikes for alternative models. This is a common phenomenon from your side as well if you change your decisions about the car you want to purchase.

Take care of these features now to offer a fixed loan quote later.

·         Find a Direct Lender Service

A car loan from Ireland makes sense when direct lenders are offering it to you.

Direct lending practices aid you in getting flexible loan terms so that repayment is easier for you. Added to that, you can get good counselling from lenders as extra support.

Now, we can move ahead to the domain of the don’ts.

The Don’ts

Prevention is better than cure.

At least, that is what the experts say.

When you weren’t to prevent further issues in managing car loans and be realistic in your borrowing, you may avoid these things as furnished below:

·         Hiding Accurate Income Statement to Your Lender

Keep in mind that the income statement can get you a loan even if you suffer from a bad credit score. What you warn is going to pay the instalments to your lender.

The amount you earn decides how small an amount you can borrow. You are welcome to take a loan out if it is okay for you to use a part of your income to spend as loan instalments without disrupting your essential needs and expenses.

Direct lenders make this calculation.

Not telling them or producing the wrong estimate about your income can get you inappropriate loan deals.

Even if your income doesn’t suit the loan amount you want, your lenders can recommend plan B.

To get that, let’s be transparent, shall we?

·         Paying Less Attention to the Terms and Conditions of the Loan

These regulations actually constitute these loans.

In the excitement of buying a new car, we can miss out on important details like loan repayment duration; interest rates. We may make miscalculations in finding out the loan value.

I would prefer to use a loan calculator in this regard.

·         Taking out a Loan from More than One Lender

If you are taking loans that way, you may lose the managing data of all the lenders you have connected with.

Of course, talking about loans is a good thing. But when you get a flexible solution from one lender already, is there any real need to find others?


Choosing more than lenders isn’t a bad thing. But you should go for one lender to have your loan and repayment organised.

But find a reliable lender.

To Conclude

Now that you know the three dos and three don’ts of direct lending practices, you can take out a loan in no time.

Just encourage yourself to keep in mind the points mentioned. I can say that there is more to know on this topic.

You are welcome to do that.

And then, welcome that car into your garage.

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