Getting The Best Deal For Your Car Finance

December 12th, 2019

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.

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