Are you in the market for a new car? Do not purchase your vehicle on Saturday – it’s the worst day of the week to buy a car. “Typically, weekends, especially Saturdays, tend to be the busiest and most crowded days at car dealerships,” said Nick Musica of Cash For Your Junk Car in a Yahoo Finance article.
“This high foot traffic can result in longer wait times and less individual attention from salespeople. Therefore, if you want to avoid the rush and have a more personalized experience, it’s best to avoid visiting dealerships on Saturdays.” On the other hand, experts recommend going to the car dealership between Monday or Wednesday to get the best service.
Now that you know when you’re going to shop for (and hopefully buy) your dream car, there are a couple of factors to keep in mind for a seamless financing experience that won’t ruin your credit.
Leasing vs. buying
If you’re wondering whether to buy or lease, it all comes down to your personal preferences and unique situation. Leasing offers lower payments, newer cars, and potential tax deductions, but no ownership or equity. Buying provides ownership, customization, and long-term cost savings, but higher upfront costs and responsibilities for maintenance and depreciation.
So, does leasing a car affect your credit? It absolutely can. When you lease a car, the leasing company typically runs a credit check to assess your creditworthiness. This credit inquiry can have a slight impact on your credit score. Additionally, the lease itself is considered a form of debt, and your payment history and the overall management of the lease can impact your credit score positively or negatively. Timely payments can help build a positive credit history, while missed or late payments can negatively affect your credit. It’s important to understand and manage your lease payments responsibly to maintain or improve your credit standing.
Taking out a car loan
You may also consider taking out a car loan to finance the purchase of a new vehicle. Can a car loan hurt your credit score too? The answer is yes, but it can also help it.
Initially, when you apply for a car loan, the lender will typically perform a hard inquiry on your credit, which can cause a temporary dip in your credit score. However, if you make timely payments on your car loan and manage it responsibly, it can actually have a positive effect on your credit.
Consistently making on-time payments on your car loan demonstrates responsible borrowing and can help improve your payment history, which is an important factor in determining your credit score. Additionally, having a mix of different types of credit, such as installment loans like car loans, can contribute positively to your credit score.
However, if you miss payments, make late payments, or default on your loan, it can have a significant negative impact on your credit score. It’s crucial to manage your car loan diligently and make payments on time to avoid any detrimental effects on your credit.
Buying a car can be a stressful purchase. Avoid shopping on the weekend and go to the car dealership on a Monday, Tuesday or Wednesday. Consider whether to lease or buy and do keep in mind the impact on your credit score when making a final decision.