Financing your new car
Securing the finance for your new car is a process that should not be rushed and certainly shouldn’t be led by emotions. Some people will find the whole process intimidating because of the sheer variety of options that are available to them and the lovely but often unfair reputations of the car salesperson.
To take the emotions out of the process and give yourself better preparation before you step out on to the forecourt, there are a variety tools and Apps available to aspiring car owners that will help them whittle down the offers and find a financing package that suits their specific circumstances. We thought it only right that we put this resourceful page together for you and spread our industry know how.
Know Your Budget
Research and prior planning are key to working out what you can afford and settling on a financing deal that is appropriate for your requirements. There are many car finance calculator tools out there. These are usually a good way of working out what you think your monthly repayments can be. You will need to work out your monthly cash flow first.
Pinpointing a Potential Purchase
As with most modern-day transactions, the best place to start your search for the right vehicle, at an affordable price with a good financing deal is the internet. (Google it!)
You will first need to work out which type of car is going to be the best fit for your lifestyle. There is no point settling for a Mini when you have three kids and a dog to bring along on a camping trip or a two seater Porsche Carrera.
The well-known industry publication What Car? and the much loved TV show Top Gear have an online presence and you can read reviews and get the verdict of the industry experts’ vehicles to help you with your decision making process.
Have a look on AutoTrader and search for models that you have your eye to see what they a fetching in a private sale. Remember, a private sale will always be cheaper than a car dealer as you will not get the warranty and extra insurances from buying from your dealer. Google is always a good search engine to use to can identify local dealerships.
It is not sensible to simply trust the salesperson or settle for the sticker price. Instead you should use a respected, independent valuation tools such as those offered by Parkers or Glass. Both of these offer handy Apps you can use when you are on the forecourt!
A basic valuation is free but if you want a more thorough and detailed estimation of what you should be paying, you will have to pay for the privilege.
Once you have researched the type of vehicle you want and obtained an independent valuation, you can start to seek out the financing to help you fund the purchase of your new car.
Spotlight on Finance
If you have not got the cash reserves to buy a car outright, financing is the best option. Whether you have a squeaky-clean credit rating or one which might not be in the best shape, there are finance deals available.
Make sure that you use a tool that allows you to research the cost of financing by presenting you with the relevant figures in real time. You will want to know how the monthly payments will be affected by the amount of deposit you are putting down and the duration of the repayment period.
With all these tools available to you, it should be easier to make an informed decision. Remember, your car dealer is expecting you to haggle, if you don’t ask you don’t get!