This question is coming up quite often recently, which is a good thing as it shows that people are getting savvy and looking for the best deal. The biggest mistake people probably do is going to the dealer, choosing a car and accepting the first finance offer that is put in front of them. Dealers are good at selling cars, no doubt in that, but are they talented financial advisors? Well, that is doubtful. Without careful deliberation a customer can end up with an unfavourable interest rate, long loan term or dubious terms. Many people are paying too much for their car finance and it is often because they’ve jumped at the first offer without considering the car finance deals elsewhere.
The key to best car finance deals is comparison. Compare whatever you are shown or be even cleverer and get somebody else to compare for you. If you don’t enjoy the internet too much and don’t want to visit a finance broker or a comparison website, you will have to approach various banks and financers for a quote. Once you have several quotes, compare them and choose the best one. Make sure you know exactly how much money you will have paid on top of the car price once the loan term is over.
If you’re all right with using the internet, check one of the many online car finance brokers, or click the image on the right side to submit a free application and see if they can find you the best car finance deals available. The best thing with the online brokers is that the quotes are not binding. Many people are afraid of filling in the forms thinking that they are legally binding. Unless specifically mentioned in the terms and conditions (although they are boring, you should always read them before using websites) a car finance application form is not legally binding unless you commit to the deal and send your printed/scanned documents over with your signature.
What should be remembered is that it is not generally a good idea to submit more than one application form with different brokers simultaneously. If it’s a serious broker, it will check your credit score and too many credit score checks can actually leave footprints on your credit score, which is not good. So, do go for free finance quotes but don’t overdo.
In order to pay as little as possible for your car, you need to have a good credit score. People who have a proven track record of paying debts and bills in time, who are easily traceable as they move homes, who have a steady source of income and no bankruptcies or IVAs to their name will, of course, enjoy the best rates wherever they go – be it a bank, a dealership or an independent broker.
It is not impossible for a bad credit customer to get a good rate and find the best car finance deals but it is even more important to compare what you’re offered because your APRs will be all over the board. So many lenders charge so different rates. If you shop around or let the broker find the deals for you, you can find that you end up paying quite a favourable interest rate despite the bad credit score.
Online brokers are good because they are constantly working within the niche and they obviously know things that an everyday car buyer don’t – where are the best prices, who provides the lowest interest rates, where there are any unknown quantities and unexpected problems. They are also experienced to negotiate with the actual car loan providers and can locate the car finance deals that are not available on high-street or somewhere else.
Considering you have taken all the aforementioned into account, you can check with a broker and get a specialist find the cheapest car finance deals for you. In search for an even extra comfort, you can go with a provider that also has a database of cars for sale available. Thus you can get your motoring problems sorted without involving too many people – the same finance broker company will also locate and negotiate the car on your behalf. Once they have done all the hard work for you, you can look at the results and decide which deal is in your best interests.
