The 4 Mistakes People Make When Buying A Car

There are 4 mistakes people make when buying a car that can cost them a lot of money. Read on to learn all about them.

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The 4 Mistakes People Make When Buying A Car

There are 4 mistakes people make when buying a car that can cost them a lot of money. In this article we outline those 4 mistakes and how you can avoid them.

Mistake #1: Not organising a loan BEFORE you buy a car.

The number 1 mistake car buyers make is they start their car buying journey by going straight to a Dealer BEFORE they have their finances sorted.

This puts you in a weaker negotiating position with the Dealer.

You’ll have a much better chance of finding a great car at a great price if you have your finance pre-approved. That’s because you’ll be able to say to the dealer that you are ready to buy today and that is music to a car salesperson’s ears. You’ll have them bending over backwards to win your business because they know if they let you go you might buy from someone else!

Importantly, having your finances pre-approved will also give you the confidence to know that you can actually afford to buy that dream car. There is nothing worse than falling in love with a car only to find out that a lender won’t let you borrow that much.

So, get your loan sorted before you start visiting car Dealers. You’ll be pleasantly surprised at what a difference this makes.

Mistake #2: Not using an online loan service

The Australian lending market is very competitive so, if you know where to look, it’s possible to find a very competitive car loan for your situation.

But there are two issues.

Firstly, it can be really time-consuming researching over 20 different personal loans.

Secondly, applying for too many personal loans can impact your credit rating. This is because an application direct to a lender will often trigger what’s called a hard credit check.

Hard credit checks are a formal credit inquiry and therefore impact your credit score.

If you apply for a loan with lots of lenders, you run the risk of seriously hurting your credit rating.

That’s why it’s important to use an online loan service. An online loan service can quickly scan the market and find a great deal for your situation – all without hurting your credit score.

When looking for an online loan service make sure they have four things:

  1. Make sure they have at least 20 lenders to choose from. It’s important they provide alternatives for you to choose from so they need a large panel of lenders.
  2. Excellent customer reviews. You want an online loan service that will work in your best interests. Find a broker with lots of 5-star reviews. Read the reviews to get a sense of the business they run.
  3. An easy online process. With the internet and digital technology these days applying for a loan should be fast and hassle free. Make sure they have quick and simple online forms that can be completed in under 10 minutes.
  4. No upfront credit checks. As mentioned above, this is really important. Make sure your online loan service does what’s called a ‘soft’ credit check which doesn’t hurt your credit score.  

At nmoni we have over 20 lenders to choose from, are rated 4.9 on Google from 450+ reviews, have a fast and simple digital application form and we don’t do upfront credit checks to protect your credit score. So apply now and sit back and relax while we do all the work!

Mistake #3: Not shopping around car Dealers

It’s really important to shop around many car Dealers looking for the best deal. If you’ve covered off mistake #1 & #2 above you can walk into that car Dealer and say “I’m buying a car today”. Watch that car Dealer bend over backwards for you!

Also, some Dealers will compete harder on price for a variety of different reasons. For example:

  1. many car Dealers are on volume bonuses. If they hit certain sales targets, they get significant extra financial rewards. So visiting one of these Dealers at the end of the month can be a great way to get an incredible price.
  2. Some Dealers might have had a car in stock for a long time and will therefore be very keen to move it on before it gets too old.
  3. Your trade in. Some Dealers are really good at selling used cars and will therefore offer more for your trade in then other Dealers. As an example, some Dealers are really good at selling used trucks so if you are trading in a truck you might just get them working harder to get your business because they know they can quickly sell your old car.


So, make sure you shop around. It’s worth the effort and, with online car listings, you can test the market fast.

Mistake #4: Not checking your credit score

Your credit score can play a major role in not only deciding if you can get a loan, but what rate you might qualify for.

It’s definitely worthwhile to check out your current credit score and look for ways to improve it. It’s really easy to do and an online loan service like us can also help. For further information read some of our great articles like “What is a credit score?” and “How do I improve my credit score?”.

So there you have the 4 mistakes people make when buying a car.

Focus on these avoiding these mistakes and you’ll go a long way to getting a great deal.

If you’d like us to find you a personal or car loan from our panel of over 20 lenders fill in our application form now. It only takes 10 minutes!

Frequently Asked Questions

A credit score is a number generated by credit reporting agencies that provides an indication of your credit worthiness. A credit score is really important as they can significantly affect your ability to get a loan and how much that loan will cost (the interest rate and other chargers).

The exact formula is not disclosed by credit reporting agencies however there are several key factors that they consider like the amount of money you’ve borrowed, the number of loan applications you have made, your repayment history and any defaults, bankruptcies, debt collection agency agreements or short-term credit you have.

Here are 5 ways to improve your credit score: 1. Pay your bills on time, 2. Don’t apply for a loan at multiple lenders, 3. Pay your loans off on time, 4. Check your credit score is accurate, 5. Reduce the amount of credit cards.

The higher your credit score the better your chance of getting a loan and the better chance you have of getting a lower interest rate. This is because if you have a really good credit score you are a lower risk to a lender and therefore are a good chance of paying back the loan. Conversely, if you have a lower credit score a lender may classify you as having higher risk and therefore charge a higher interest rate.

In addition to your credit score, other factors like overall banking conduct (such as dishonours and payday loans) can also impact the interest rate you are offered. 

At nmoni we do not perform upfront credit checks. This means that we can review your application and give you a guide as to whether a lender will give you a loan before a credit check is completed. Our process reduces the number of credit checks required and therefore helps you avoid hurting your credit score. Start the process today by completing our fast application.

At nmoni we review your situation and only apply for loans with lenders we believe will approve your application and provide the right rate. This will reduce the impact on your credit score while also saving you a lot of time and hassle.

This is really important as you don’t want to get a loan with a lender that charges high fees and has high exit costs. We only deal with reputable lenders so we can ensure you avoid any of these potential potholes. Also, make sure the lender or broker you use has high Google ratings (we happen to have a 4.9 out of 5 Google rating!).

The good news is that there are lenders who work with clients looking for a car loan with bad credit. Importantly, these lenders often change their lending criteria so it’s important to work with a broker who can help place you with a lender who is more likely to fund your dream car purchase. Please complete our online car loan application and we will check our panel of over 20 lenders to see who can help with your situation.

We take a broader view of your application than just your credit score. We do this by reviewing your overall credit profile to get a clearer picture of your financial position. We do this without performing an upfront credit check (we do a soft check that does not impact your credit score). Importantly, we also provide credit feedback if we cannot assist you with a loan right now. 

Secured loans are amongst the easiest loans to get. That's where you put up something of value in exchange for funding. Car, boat and caravan loans are types of secured loans and means the lender has some security over the loan.

We can review your situation and provide feedback on why you are being declined without hurting your credit score. Apply now and we'll provide you valuable feedback.

There are lenders we work with that specialise in clients with lower credit scores. The best way to find out is to complete our online application and we’ll put our technology and/or one of our credit analysts to work to review your file and provide feedback. We can provide valuable information on your options without affecting your credit rating.

real customer reviews


4.9 Google rating
based on 500+ reviews

After searching for a car loan I found nmoni. They are very helpful… keep you up to date at the progress of your loan. And made settlement a breeze. Thank you Chris and Michelle you are both amazing.

Jodie Bayliss

Outstanding service. Above and beyond and service you just can’t get from a big bank or finance company.The team at nmoni have been incredibly helpful in assisting me with obtaining business finance for my new vehicle. Every step of the process they have been super responsive and highly efficient. I would highly recommend their service!

Ben Duncan

I just want to say thank you to Chris from NMONI for helping me get my car finance.

Highly recommended bunch! As they go above and beyond to help you achieve the best possible outcome. They are very prompt with communicating and provide excellent customer service.

Kevin Reyes

Omg with my credit rating I thought I’d never get credit again but these guys gave me the chance and now my credit rating is rising these guys work magic

Josh Carson

Nmoni is such a great lending company, Christina is the best of best broker, person and very understanding. Great customer service and very helpful any time, she actually answers the phone unlike other company employers who do not care. She Actually cares and Christina does everything in her power to help and solve your issues. Thank you Nmoni and thank you Christina.

Mirjana Markovic

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Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser