How can I find the best car loan finance?If you are buying a car from a dealership, no doubt the salesman will offer you a glossy brochure inviting you to borrow the cost of the car from them. However, this may not always be the best car loan finance available. Shopping around online by looking at a specialist motoring website can give you an idea of the other financial products out there.
If you are buying a car from a dealership, no doubt the salesman will offer you a glossy brochure inviting you to borrow the cost of the car from them. However, this may not always be the best car loan finance available. Shopping around online by looking at a specialist motoring website can give you an idea of the other financial products out there.
First, work out a realistic budget. Ask yourself how much you can afford in terms of monthly repayments and do not go over this figure. Do you have a deposit to put down? Try to scrape together the biggest deposit available, as this will bring down the amount you will have to borrow.
Next consider your credit history. This is an important factor lenders use to decide whether to offer you a loan, and if they do, what the interest rate will be. It’s worth obtaining a copy of your credit reference from a credit scoring agency to make sure that the information they hold about you is correct. Borrowers with a perfect credit history will typically have access to the best car loan finance options. But if your score is less than perfect, do not worry as there are still plenty of options out there for you.
Looking at interest rates can be confusing, but doing a comparison online is a quick way of assessing who is offering the best deals. The rates offered for longer term loans may be lower than for deals with shorter terms, but you need to consider what will suit you best over all. If you stretch the deal out longer, you will usually end up paying more interest. Also, consider how interest is calculated and charged. Some lenders offer loans with variable rates that can go up or down, meaning that your repayments could vary. Others stick to the tradition pattern of offering a fixed rate throughout the term.
Finally, consider the other terms and conditions that come with the loan. With some arrangements, the borrower can repay parts of the loan early to bring down the overall cost. If you are hoping to be able to accelerate your repayments, this could be something to consider when you are selecting the best car loan finance deal.
Posted by Edwin Miles on