How to Get the Best Car Finance Deal
Taking out a loan to buy your car may be your only option considering your cash shortage but that doesn't mean you have to accept high interest rates. Just like with any other types of loans, car financing come in varying cost. To get the best deal, you'll just need to know what to do and where to look. Of course, you'll also have to take note of key factors and bring along some insider tips before signing any dotted line.
Below are helpful guidelines to take into account when scouting the market for the best deals.
1. Pick the right provider
To get the best deal, you have to go with the best provider and there's not one best option for everyone. It varies with need and preference so be prepared to check out several providers before finding the right one. The key is to pick a top three and compare them according to years in business, customer feedback and customer service.
2. Compare deals
When looking for car finance, you don't always have to start by finding the right provider. You can also kick off your search by comparing deals using some of UK's top and leading comparison sites. Doing so will shorten your search time plus you get to easily compare car finance deals according to a number of factors including loan amount, loan term and interest rate.
3. Find out the real APR
When it comes to comparing the cost of car finance deals, the best benchmark to use is the APR or the annual percentage rate. This is the only rate that allows you to compare one option from another more effectively. When talking with a dealer, a provider or a salesperson make sure to ask about the real APR of the financing.
Oftentimes, providers only reveal the flat rate which is not the real cost so you have to be vigilant and find out about the real APR yourself.
Is the concept of APR still unclear for you? Click here for a more detailed discussion.
4. Haggle hard
Don't be afraid to haggle when looking for the best deal. If you want cheaper rates then ask for it. When the dealer says no, it's no big deal but when they do say yes, you win big time. Either way, you have nothing to lose. Just remember that some dealers are open to some negotiations especially if they need the money from car finance to keep up with their profit targets.
5. Take your time
Some buyers upon seeing the sale sign or cheapest deal advertisement don't even think twice anymore. You don' want to be one of those people who are lured by empty promises. So before signing any deal, be sure to take your time perusing and comparing your options.
6. Think Long Term
Finally, you have to embrace the long term view if you want the best deal for the long run. When speaking with your dealer, talk about the repayment scheme. Is it weekly or monthly and which of the two is better in terms of cost for the long term?