Buying a new car can be very exciting. However, when it comes to organising finance, it can become a headache, particularly if you have a low credit score or a poor credit history.
Nowadays, with the economic climate the way it is, you’ll find that there are many companies who will be willing to lend you the money you need – all it takes is some shopping around.
Shop Around For The Best Deal
There is no excuse for you to take the first loan you come across, now that we have the Internet. If you think you’ve found a great deal, it still pays to shop around as you may be surprised at what’s on offer. Use the Internet to do online searches, talk to friends and family and visit local lenders. If you have a good relationship with your bank manager, you may be able to negotiate a great deal.When looking for a loan, choose the lowest APR and the best time period to pay it back. Some companies offer flexible payment schemes and no fees for early repayments.
Check the small print and avoid payday loan companies.
Use An Online Calculator
If you want to compare your payments for several loans with varying APR rates and timescales, use an online calculator.
It is better to do this than to submit several online applications to try and get the best deal. Making several loan applications in a short space of time is a red flag to lenders and, as a consequence, you may receive less favourable terms with each application and may even be declined. Choose the best deal and then submit one application to your chosen lender.
Look For Extra Bonuses
What if you’re struggling to choose between several great deals? Look for the one that has extra goodies thrown in.
Some lenders offer competitive car insurance quotes and, if you are going direct to the car showroom, they may even offer free MOTs for a year or discounts on car breakdown cover. If you have an excellent credit history, you may be able to negotiate these extras yourself.
So, What’s Next?
Now that you’ve got a better idea of how to find the right finance, you should be well on your way to owning the car of your dreams without the financial stress that often comes with it. Good luck and here’s to the drive of your life!