Skip to content

Choices of car loans

When going out and looking for a used or new car you take your time, go over the vehicle with a fine tooth comb, find out as much about the model you are considering buying as possible and never rush into the decision. However once you have found the perfect vehicle at the perfect price what do you do about finance for the car? The majority of people, it appears, never give much thought to how they are going to finance the vehicle and indeed often just take the first loan offered by the salesman

When going out and looking for a used or new car you take your time, go over the vehicle with a fine tooth comb, find out as much about the model you are considering buying as possible and never rush into the decision. However once you have found the perfect vehicle at the perfect price what do you do about finance for the car? The majority of people, it appears, never give much thought to how they are going to finance the vehicle and indeed often just take the first loan offered by the salesman. However you do have choices when it comes to car loans. You could for instance go with a specialist broker online and allow them to find the best car loan for your needs. This may end up saving you a great deal of money.


The car salesman may offer a good deal but it would not hurt to compare what other options are available. They might offer you a loan that comes with a 0% interest deal for a certain period of time, say for 6 months. If you could pay off the loan within that period of time then this could be a great way of savings money on your borrowing. However always check to find out what rate of interest you would have to pay out once the “special deal” has been reached. You could end up paying a huge rate of interest which would end up adding a great deal of money onto the cost of your vehicle.


When looking for car loans one of the main things that is taken into account by any lender is your credit rating. If you have an excellent rating with no blemishes on it then, typically, you will be given the best interest rate. However if you have a poor credit rating and have been turned down for credit in the past then you may have to pay a higher rate or even look for a bad car credit loan.


If you arrange a loan before you walk into the showroom to buy a vehicle then you could have a great deal of haggling power. You would be able to walk into the deal with cash in hand, once you have money in the bank of course from the loan. This could put you in a great place. As you are paying in cash you can often get something knocked off the price of the car. Shopping around for car loans online and taking your vehicle this way could mean that you have the power of being able to negotiate and this may be one way to save a great deal of money.

Posted by on

Back to May 2009

Back to top