Car Finance – how to find it.Few people buy a car without looking around extensively at the options available in the market. It may not be a bad idea to look similarly hard for the most suitable deal on car finance.
Few people buy a car without looking around extensively at the options available in the market. It may not be a bad idea to look similarly hard for the most suitable deal on car finance.
Car finance – the basics
When you’re buying a car, unless you’re lucky enough to be relatively wealthy, then there’s a fair chance you’ll need some form of financing to make the deal feasible for you.
Car finance comes in many forms and with many different implications but typically they’ll all have certain basic things in common:
• You will need to show some evidence of your income so that the lenders can assess how much you can safely afford to borrow;
• You may need to find a percentage of the price as a cash deposit (in some cases the part exchange of an old vehicle may be satisfactory);
• The amount you’re borrowing will need to bear some relationship to the value of the vehicle and usually be ‘less than’.
Where to find deals
• The banks. A good traditional source but they can be very choosy whom they lend to and they may ask for a very substantial deposit. They, of course, can’t directly help with part-exchange etc.
• Credit cards. A possibility, though you may find that their interest rates are high and the amount available may be insufficient for your needs.
• The dealerships of specific manufacturers. You may find some good deals on offer but you may not have much if any of a choice between different manufacturers’ vehicles.
• Specialist car finance websites and companies. Through these sources you may find a wide range of deals to choose from and they won’t be tied to a specific make of vehicle. If you find your new vehicle through the same site, you may be able to do the purchase, disposal of your old vehicle and find the car finance all at the one site.
Looking may save you money
It’s perhaps sometimes a little too easy to just drift into a single forecourt dealer and ‘sign-up’ for their finance based on that single car you can see. Using the web and the specialist car purchase and car finance websites may save you a lot of money both on the cost of the vehicle and the loan. They may be worth checking out further.
Posted by Edwin Miles on