Before you begin looking at the latest deals on car finance, read up on a few tips first and avoid the pitfalls.
The majority of people looking for car finance will charge off to the dealer’s forecourt and begin looking at cars and prices; they do this before considering how they are going to finance their new vehicle.
Yet it can be a heavy financial commitment. The result is often a bigger outlay because, without proper research, you will not get the best deal.
Take a look at the options before going ahead; compare car finance loans as you would with most other types of loan and arm yourself with some pre-loan knowledge.
Top tips for getting cheaper car finance
Check your credit report for free before you apply for a loan; those with an unblemished credit history will have the best access to unsecured personal loan rates.
Even if your credit history is not perfect, it’s worth shopping around to find a better deal.
If you can save up the cash in your pocket before you begin your car hunt, you will be in a powerful ready to buy position and, if you can put down a substantial deposit, some dealers offer 0% finance on new cars.
Do your homework and make the right calculations, taking into account size of the deposit, the final payment and the regular monthly loan payments; the final cost may be higher than you first thought.
Think about buying into a leasing deal; these can be a good bargain as servicing and repairs are usually paid for by the finance company.
If you have a low credit rating, leasing may be a favourable way to obtain a car as it avoids having to purchase the vehicle outright.
If you are purchasing your car, ask if there are any available that have been pre-registered by a dealer. Mileage on these cars could be significantly lower which means you get a nearly new car at a second hand selling price.
Check things like the likelihood of the manufacturer going out of business and long term availability of spare parts. Who can supply these when faults occur?
See how much you can negotiate on bringing the price down. Many dealers will begin high and get the top rate if no questions are asked; yet they are likely to expect buyers to try and get a better deal.
Ask about extras on the policy such as extended warranties and service packages. These could save you quite a bit of cash long term.
All these tips could lead to you purchasing your car without the headache, and with your pocket considerably more full with coins.