Choosing The Most Appropriate Car Finance Deal When Buying a Car
There are a number of different options for obtaining car finance when you are searching for that new vehicle.
It’s always advisable to have the assistance of a specialist such as Forza Finance in helping make your way through the numerous options on the marketplace.
In what follows, we’ll outline a few very generic points that you should be thinking of at the time you start your search.
You will, of course, need to think through your budget.
Some options will require some form of financial contribution from you by way of a deposit – and the amounts may vary depending upon the type of finance to possibly the nature of the car. After that, your outgoings will relate to the typically monthly repayments you will need to find.
Remember to build in some form of allowance for running costs and the unforeseen.
This may be a perfectly attractive route for car finance but keep in mind a couple of things:
- it’s sometimes preferable to have your finance in your pocket (or at least agreed in principle) when you go into a dealership to negotiate, rather than to risk diluting your bargaining position by needing to ask them to supply you with finance as well as a vehicle;
- dealership finance can appear to offer the big attraction of being one-stop shopping but that doesn’t necessarily mean that it is a suitable option for you in terms of things such as interest rates etc.
It’s something of a myth that you can’t get car finance if you have problems on your credit history records.
Typically, lenders won’t have troubles with what might be termed routine black marks on your files.
However, if you have a particularly challenging credit history, then you may need to face the reality that specialist assistance might be required to help you obtain finance. You will also probably need to pay more for your finance than someone would who didn’t have the same problem.
Be as flexible as possible
Finding finance is very much a case of maintaining a constant current watch on the marketplace.
Attractive deals can come and go on a daily basis and for example, something which appears to be the most cost-effective solution today might not be so in a week’s time.
Providing you have advice and guidance as to what the market is doing and more importantly, what is likely to happen in the immediate future, you can sometimes find more attractive deals if you can be a little patient or perhaps select a slightly different model of car etc.
Tracking those things is one of our key skills.
The term of the borrowing
There is a huge variety of products out there including those that involve immediate purchase, deferred purchase or leasing that never results in an outright purchase.
The solution you choose will be linked to your own preferences and longer-term plans but as a very general guideline, remember that the longer you spread your agreement over (called the term) then the more you may end up paying for the vehicle in total.
To borrow £30,000 over two years will typically cost you less in interest than spreading those repayments over five years. However; the longer the term is, the lower your monthly outgoings may be and therefore you may need to balance your car finance selection based not only upon your financial position now but what you might expect it to be in a few years’ time.