Top 10 Tips for Securing the Best Car Finance Deals 2024

Navigating car finance can seem hard. But finding the best car finance deals in 2024 can be easy. If you’re searching for low monthly payments or a flexible personal contract purchase (PCP) plan, these 10 tips will help you get the right deal for your personal circumstances.

1. Understand the Types of Car Finance Available

Before you start a finance agreement, it’s important to understand your choices. Here are some common types of finance:

• Personal Contract Purchase (PCP): You can have low monthly payments. There is an optional final payment if you want to own the car.
• Hire Purchase (HP): You pay higher monthly costs, but you will own the car at the end of the agreement.
• Personal Loan: You can borrow the whole loan amount and then pay it back in instalments. Usually, it has lower APR finance rates.

Knowing these choices helps you choose what works best for your financial circumstances.

2. Improve Your Credit Score Before Applying

Your credit score is very important for getting good car finance deals. A higher score can help you get better annual percentage rate (APR) offers and easier terms.

How to Improve Your Credit Score:

• Look at your credit history for mistakes.
• Clear your debts, such as credit cards.
• Don’t apply for several credits within a short time.

3. Save for a Larger Deposit

A larger first deposit or a higher minimum deposit means you will borrow less money. This results in smaller monthly payments and less interest to pay in total.

Tip:

Think about saving for a larger deposit if you can. It can really help lower your repayment amount.

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4. Compare APR Rates Across Lenders

Different finance companies and lenders have different APR finance rates. A small change in the interest rate can save you a lot of money over the time of your loan.

Use a Finance Calculator:

Online calculators can help you figure out your repayments. They will show you the total costs based on the loan amount, interest, and term.

5. Look for Deposit Contributions

Some car dealerships and manufacturers give money to help buyers. This money is called deposit contributions. It helps lower the initial deposit you need to pay.

Example:

Brands like Suzuki, MG, and Skoda often have offers that provide a lot of help with deposits. This is especially true for their new models.

6. Tailor Your Finance to Your Personal Circumstances

When you pick a finance agreement, make sure the terms match your money goals.

Key Factors to Consider:

• Your monthly budget.
• Expected repayments during the term.
• If you want to own the car fully (HP) or have more options at the end (PCP).

7. Choose the Right Car to Finance

Some cars are cheaper to finance than other cars.

For example:

• Nissan Leaf: Provides good finance deals for buyers who care about the environment.
• Tesla Model Y: A favoured option for people looking for top EV financing.
• Suzuki Swift: Great for buyers who want low monthly payments.
• Look for specific models.
• Find the best balance.
• Focus on affordability and features.

8. Ensure the Lender Is FCA-Approved

Choose a finance company that is approved by the Financial Conduct Authority (FCA) to keep your interests safe. FCA-approved lenders must follow strict rules. This ensures that their finance agreements are clear and fair.

9. Consider Loan Term Length

The length of your loan affects your repayments:

• Shorter Term: You will have higher monthly payments, but you will pay less in total interest.
• Longer Term: You will have lower monthly payments, but you will pay more in total interest.

Look at your financial circumstances. Think about what is best for you.

10. Use a Comparison Service to Find the Best Deal

Comparison services help you save time and money. They show several car finance deals next to each other.

Benefits of Using a Comparison Service:

• Look at APR, loan terms, and deposit contributions.
• Get special offers from dealerships and lenders.
• Customise results for your needs, like low monthly payments or short loan terms.

Start comparing today. You can find the best car finance deals in 2024 that are right for you!

FAQs About Car Finance Deals in 2024