Skip to content

Searching out cheap car finance deals

If you want cheap car finance deals, you may find that a personal loan may sometimes but not always come with cheaper interest rates than the rates offered by hire purchase.

•    If you want cheap car finance deals, you may find that a personal loan may sometimes but not always come with cheaper interest rates than the rates offered by hire purchase.
•    A specialist motoring website may be able to find you a suitable loan. They can sift through quotes on your behalf and based on your circumstances. You are then free to find the right loan for your needs.
•    Remember that the better your credit rating, the cheaper the loan may typically be. Therefore, you may want to check your credit rating before applying for finance with one of major credit reference agencies such as Experian or Equifax. If your credit rating is poor and you have been turned down for credit in the past you may want to consider looking for a bad credit loan.
•    If you are buying a cheap used car and you have a great credit rating, you may want to look for a loan that offers 0% interest for a period. If you are able to pay off the loan within that time, your purchase comes with no added interest. 
•    On the other hand, take care when considering  a loan with a 0% interest rate for a limited amount of time. If it reverts to an above average rate of interest after the initial 0% interest period and you have the intention of paying off the loan early, do check that you will not have to pay an early redemption fee. Often you find that a one off sum of money has to be paid if you do pay off the loan much earlier than anticipated.
•    Always aim to borrow the least amount of money you have to. It may be tempting to ask for a little extra money when applying for a loan but remember that the more you borrow the more you have to pay back. Therefore, only borrow as much as you really need for your vehicle.
•    Ask yourself if you really have to buy a brand new top of the range vehicle straight out of the showroom. This may mean you have to borrow thousands of pounds. There are many excellent used quality cars out there which are fairly cheap, which mean that you may have to borrow a lot less and so have less to pay back.
•    Finally, when looking for a used car you may be able to get a great used vehicle through a specialist website that may also be able to offer you cheap car finance deals at the same time, which may make buying a vehicle a great deal easier.

Posted by on

Back to September 2009

Back to top