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Car Buying and Car Finance Tips

Buying and financing a new or used car should be a fun experience. However, if something goes wrong – maybe you end up with a rust bucket or you get a car loan that is too expensive – it can leave you with a bitter taste in your mouth. However, by following our car buying and car finance tips below, it can help ensure that the whole process goes as smoothly as possible and that you don’t end up feeling ripped off!

Buying and financing a new or used car should be a fun experience. However, if something goes wrong – maybe you end up with a rust bucket or you get a car loan that is too expensive – it can leave you with a bitter taste in your mouth. However, by following our car buying and car finance tips below, it can help ensure that the whole process goes as smoothly as possible and that you don’t end up feeling ripped off!


Car buying tips


•    The first thing you need to do when considering a new car is to set a budget as to how much you can comfortably afford. And then you need to stick to it! It’s not always as easy as it sounds - we’ve all done it, where you’ve had a figure in mind when buying a new car and have then got tempted when a sleeker/ newer/ shinier car is put in front of us! But, as grand dad used to say: “What’s the point in having an Aston Martin if you cannot afford to fill it with fuel?”


•    Once you’ve set a figure, take a good long hard look at what car bests suits your circumstances. Are you an irregular driver who only needs a small car to poodle around town in or do you need an estate car so that you can pile in the kids / dog etc? Be realistic as to the style of vehicle that best fits in with your lifestyle, and stand firm on it. Don’t be swayed by that sporty, sexy little number – unless that is what you have actually decided to get!


•    While you are considering the type of vehicle, don’t forget to look at associated costs. For example, what car insurance group the vehicle is – the higher the group, the more your motor insurance will cost you. How fuel efficient is it? And do you have any friends, family or work colleagues who have got the same model? If so, ask them what is so great about that particular model and what isn’t?


Car finance tips


So now you know what car you want to buy. The next thing to do is to decide how you will raise car finance for it. Obviously, if you are buying a second hand car privately, then your only options are to either take out a personal loan; a car loan; or to release equity from your home, and therefore cash, by remortgaging.


However, if you are buying from a dealer, you have a wider choice of car finance options:


•    Again, you can look at car loans, personal loans or remortgages. The easiest way to shop around for the best interest rates is by doing it online. Also, by arranging your own finance, this can put you in a better position to haggle over the price with a dealer.


•    Alternatively, you can look at the dealer finance schemes. There are a number of different options offered - often known as forecourt finance – so again it makes sense to do a little research to find out who is offering the sort of finance package that you want.


•    Also, take a look at specialist car loan and motoring websites. They can be very valuable in helping you find affordable motor finance, with some offering the opportunity for you to buy a new car online as well as arrange finance. As this is all done over web, where there are less overheads, this can quite often attract a substantial discount!


As you can see, the common theme running through these car buying and car tips is the importance of research. Buying a new or second hand car is something that shouldn’t be rushed in, so it worth taking your time so that you end with the right car at the right price.

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Back to June 2009

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