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Three top Car Loan tips

If you are buying a new or second hand car, then it is likely that you’ll need to arrange some form of car credit to enable you to make the purchase. And as we all know, if you borrow money, you have to pay it back - and with more on top! The good news though is that there are ways that you can make the most of your car finance so that you don’t pay over the top for it. Read on for some car loan tips that will help you find a good deal on your car finance:

If you are buying a new or second hand car, then it is likely that you’ll need to arrange some form of car credit to enable you to make the purchase. And as we all know, if you borrow money, you have to pay it back - and with more on top! The good news though is that there are ways that you can make the most of your car finance so that you don’t pay over the top for it. Read on for some car loan tips that will help you find a good deal on your car finance:


•    Car loans are available from a number of financial institutions, such as banks, lenders, and building societies. A decade ago knowing who was offering a good deal was difficult to find out and in most cases, unless you just accepted your bank’s car loan, good interest rate or not, involved trekking up and down the High Street; looking at flyers in newspapers and magazines; and ringing around. Nowadays you can take advantage of the internet and find and compare car loans fairly easily. This allows you to look at not only interest rates, but the terms and conditions of the loans too, enabling you to see who is offering the best all round borrowing for you.


•    Bear in mind that if you have a less than perfect credit history, you may have to pay more for your borrowing than someone who has an excellent credit record. In some cases, you may even get refused credit. But by using a specialist car finance and motoring website, you can often find loan products designed specifically for people who have experienced financial difficulties in the past. Websites such as these may be a good place to start if you are worried about getting accepted for a car loan.


•    Finally, remember that typically you will pay less for your borrowing if you take out a secured loan. A secured loan is where the borrowing is charged against your property. This is a serious matter if you default on the repayments, as it means that the lender could take you to Court and repossess your home in order to get his any outstanding repayments back. But if you are confident that you will be able to maintain your car loan repayments, then taking out car credit this way can often work out cheaper than taking an unsecured loan.


To sum it up, by using our car loan tips, you are on the road (excuse the pun!) to getting a good deal on your car finance.

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