Buying a new car isn’t like going to the shops to purchase a new outfit. A new car is potentially a very big purchase, depending on what you’re looking for of course. We all decide to buy new vehicles for different reasons. Some of us look for a new car because our old one decided to stop working, while others look for a new car as a way of upgrading and treating ourselves to something nice. The amount you spend on a new vehicle is entirely up to you, but if you do want to make the process a little more affordable in the short-term, you may wish to go with finance. Rather than paying one large lumpsum, you instead spend a much smaller amount each month, over the course of several years, until the price of the vehicle has been paid off, plus interest of course. If you know where to look, there are some great car finance deals to be had. Here are some tips to help get you started.

Make sure you have a strong credit rating

Before you even consider trying to finance a car, you should first take the time to ensure that you have a strong credit rating. Your credit rating will not only affect your eligibility for getting car finance in the first place, it will also affect some of the deals that you could potentially access. If you have a poor credit rating, your likelihood of obtaining car finance will be very low. What’s more, to add salt to the wound, if you do apply for car finance but are unsuccessful this will actually make your credit rating drop even further. To build a strong credit rating, never miss a payment, don’t apply for unnecessary credit, don’t take out too many loans, and don’t get careless with your money. The stronger your credit rating, the more likely you will be to be approved for car finance.

Use the internet to your advantage

If you’re looking to save money and want to finance a new car, the internet is a great resource to have at your disposal. There are websites and forums out there listing some of the best deals and companies offering said best deals, as well as offering helpful advice on what you can do to improve your chances of being approved. There are sites telling you when to apply, how to dress, how to act, what to ask, what to look out for, and much more besides. There really is a wealth of knowledge out there at your disposal, so use it wisely.

Use a credit card

If you’re not sure about the interest payments associated with car finance, if you have the funds on your credit card, you could use that instead, and essentially create your own car finance deal. If you have a credit card with 0% interest on purchases for example, you won’t pay any interest. You will of course need to pay at least, the minimum amount each month, but that will still likely be cheaper than most interest rates offered by car finance companies.

Owning a car is not only liberating, it also helps make everyday life so much easier. What’s more, with fantastic car finance deals available to more people than ever before, nobody is missing out. Car finance is one way to purchase an affordable car, and we’ll be looking at that in more detail a little later on, but what else can be done?

Buying a car is generally not cheap, and it’s certainly not like calling in at your local supermarket for a pint of milk and a loaf of bread. Buying a car can be an expensive ordeal, which is why we’ve compiled this article. If you’re on the lookout for a car and want to keep your costs low, here’s a look at a few tips on how you can snag a great bargain and buy an affordable car.

Purchase a car at least a year old

If you’re looking to buy a brand-new car, you should ask yourself whether it really does have to be brand new, or whether you could cope with a car older than one year old. You see, according to recent research, cars that are at least one year old are considerably cheaper than cars that are brand new. The second you drive a brand-new car out of the dealership it begins losing value. Cars, other than classics, are probably the worst investments you could make in terms of finances. Within the first twelve months, cars lose as much as 27% of their total value. Therefore, if you buy a car roughly a year old, it will still have very few miles on the clock, but will now be a great deal cheaper and more affordable. We’re not talking hundreds of Euros here, we’re talking several thousand.

Car finance

We touched on car finance earlier on, but now we’ll elaborate. Car finance is seen by some people as a rip-off, but that’s not true. Sure, once upon a time, car finance interest rates were extortionate, but times have changed. Now, finance companies have to be more competitive than ever, which means offering low interest rates so that people go with them in the first place. If you want to buy a reliable and fairly-new car, rather than a clapped-out old banger, car finance is ideal. Car finance lets you purchase a fairly-expensive car and pay a small amount each month over several years, plus a little interest.

Choose the right time to buy

If you are buying from a dealership, it may be worth planning your visit carefully. You see, dealership salespeople have targets to meet in order to snag bonuses, and typically they are based upon sales made quarterly. December, March, June, and September, towards the end of the month, are typically good times to visit. During this time, the more cars they sell, the more commission they will earn so they will be likely to do a better deal with you. Needless to say, don’t be afraid to haggle, especially as you have nothing to lose, while they have everything to gain.

4 Car Finance Mistakes to Avoid

Okay, so the time has finally come for you to take the plunge and buy yourself a new car. Your old banger has finally given up the ghost, and you’re looking to treat yourself to something a little more upmarket and expensive. Unless you have a few grand laying around the house, car finance may be your only option to make your monthly payments more manageable. Before you apply for car finance however, there are some things you need to know. Car finance is not a given, and you aren’t guaranteed to be accepted and approved. To help give you the best possible chances of success however, here are 4 car finance mistakes to avoid making.

Failing to check your credit score before applying

Before you even consider applying for car finance, the first thing you need to do is check your credit score. There are a number of websites online that offer this service for free, and while they aren’t generally 100% reliable, many of them are pretty accurate and so they will give you a rough idea of what your score and rating is. If you check your score beforehand, it gives you an idea of what your chances will be of being approved. If for example, you check your score and your rating is low this means you will likely not be approved. If your rating is good, your chances of being approved increase. It is worth knowing your score because if you are rejected, your credit score will actually drop further, and vice versa if you’re approved.

Not shopping around

The car finance market in Europe is incredibly lucrative, which means that there are plenty of companies out there that want a piece of the action. This is good news for car buyers because it allows them more choice and more options. Before you consider applying for car finance, read reviews online, post in forums, and do your own research to try to find out more about the different options available to you. Yes, we know it’s time-consuming and how you’re desperate to get behind the wheel of your new motor, but if it means you save a few hundred Euros each month, surely it’s worth doing?

Not setting a budget

When you buy a new car, you need to set yourself a maximum budget well in advance. The issue with finance is that, because the monthly payments are often so manageable, people forget how much they’re actually paying for the car. Before buying, give yourself a maximum budget and don’t forget how, over the years, when your car finance deal has ended, you will likely have spent more money than the car was valued at, at the time of purchase. It sounds unfair but that’s how finance works. Make sure you factor the interest payments into your total budget.

Beware of early payoff penalties

This sounds bizarre, but if you suddenly decide that you would rather pay off the price of the car in one lump sum, and therefore pay off your car finance in one go, often there may be hidden penalties. That’s right, for paying off the car early, you are sometimes charged a penalty, as it means the lenders may make less money from interestover the coming months/years. Be crystal clear on all terms and conditions when buying a new/used car.

Car Finance – 4 Ways to Purchase a Car Without Breaking the Bank

To some people, cars are nothing more than a way of getting from A to B. To others however, cars are an enormous passion, with some literally earning a living from them. If you’re a self-proclaimed ‘petrol head’ you’ll no doubt have spent many a Sunday afternoon daydreaming about one day owning the sports car you’ve always wanted. Rather than day dreaming about owning your dream car however, why not make it a reality? Thanks to car finance, personal loans, and other means of buying, buying your dream car, whatever the price tag, is now easier than ever. Here’s a look at a few examples of how you can purchase a new car without breaking the bank.

Cash or savings

If you’re serious about buying your dream car, you may have decided to start saving up for it years ago. One day, the time will come when you have enough savings to be able to head out and buy your new car in one go. The benefit of using your own cash/savings is the fact that once you buy it, you then own the car and you can do with it whatever you like. Sure, there’s the tax and insurance to pay for, but once you own the car and have paid for it that’s it. If you can afford to buy it outright, buying it there and then is certainly going to work out cheaper in the long run. There’s also the bonus of you owning it, so you could always sell it if funds were tight.

A personal loan

Another way of buying a new car without spending a fortune on car finance is to get yourself a personal loan. A personal loan can be obtained from a finance provider, a building society, or a bank, as long as you have a fairy-impressive credit rating. Once you are approved, you then borrow the money and can pay it back in monthly payments over the course of several years. The longer you spread out the cost, the less you will pay each month.

Personal Contract Purchase

Personal Contract Purchase, or PCP, for short, is a type of car finance where initially lower monthly repayments are made. Rather than obtaining a loan for the full cost of the car, you instead obtain the loan based upon its value now, and the estimated value at the end of your hire agreement. This is often estimated based upon your predicted mileage.

It is worth noting however, that like most other forms of car finance, at the end of the agreed hire period, you will likely have paid more for the vehicle than it is worth, thanks to the interest payments. After all, the PCP providers have to profit some way, otherwise they’re getting nothing in return. At the end of the term you have the option to pay the difference and buy the car if you really liked it, or you can start the process again with a new vehicle, or simply give it back to the dealership and pay nothing else.

Car Finance – Don’t Make These Mistakes When Buying a Car

Buying a car is a real treat for some people, and an absolute nightmare for others. Some people take great pride in their cars and treat them like a member of their family, while others simply use them as a way of getting from A to B. In terms of buying a car however, it’s important that we follow the necessary steps and don’t find ourselves paying over the odds, taking out a bad car finance deal, or ending up with a car we dislike. If you’re on the market for a new car, or a pre-owned car for that matter, we want you to get the best deal possible. That’s why for today’s article, we’re looking at a few common mistakes people make when buying a car, and at what you can do to avoid making them yourself.

Not doing your research

Before you buy a car, it’s important to take the time to do a little research and a spot of detective work. If you are planning on buying from a car dealership for example, it may be worth taking the time to search online and try to find out more about the dealership in question. Do they have reviews? If they do, are they positive? Do they have a reputation for selling poor-quality motors, and have they been involved in any previous scandals? As well as the company you are buying from, look online to find info about the car in question. Is it reliable? What type of feedback does it have, and does it sound as if it will fit your basic needs and requirements?

Spending too much

Another mistake a lot of people make when buying a new car is letting their hearts rule their heads. Rather than thinking practically or logically, they are instead blinded by their desire to own what they perceive to be their dream car. Shortly afterwards however, once the novelty wears off, they’ll realize that in actual fact, they did pay above the odds and will wish they’d gone for something cheaper, and more practical.

Not considering car finance

Car finance is very useful for times when you want to buy a decent car, but don’t have the money to spend in one go. Car finance basically allows you to spread the cost of the car out over several years, where you pay an agreed upon amount of money each month for fixed period of time. This way, your monthly payments are smaller so you can still pay the bills, buy food, and lead a social life, plus you get to drive around in a great car.

Overlooking other expenses

Okay, so suppose you do find your dream car and can easily afford to purchase it without spending over the odds. That is just one thing to consider. Cars will require diesel or petrol to run, plus there’s road tax, insurance, and maintenance. Make sure you consider everything else when buying a car, otherwise you’ll find yourself spending much more than you bargained for.

Myths About Car Finance and Insurance

Buying a new car is either a treat, or a chore. Some people take great pride in their vehicles, while others view them purely as necessities. The great thing about the motor industry nowadays, however, is that thanks to the numerous car finance deals currently available to us, we can purchase a variety of new and attractive vehicles without bankrupting ourselves in the process. As well as car finance however, there’s also the insurance to consider. When it comes to finance and car insurance, there’s a lot of myths and misconceptions that need clearing up. That’s what we’re aiming to do today. Here’s a look at a few common myths and misconceptions about car finance and insurance.

You don’t need to pay an excess if you’re not at fault

This is one of the most common myths surrounding car insurance, and it’s simply not true. Many people out there seem to think that if they make a claim that wasn’t their fault, I.E if another insured vehicle crashes into them whilst they were stationary, that they don’t need to pay the excess. The truth is that you still need to pay the excess up front. The good news is that most insurers will refund this excess if it is deemed that you were genuinely not at fault. This is why it’s important to remember to go with an excess that you know you can afford.

Car finance is a rip off

When you speak to a lot of people about car finance, many of them will tell you that it is a rip off and waste of money. Yes, the finance companies do charge more than the vehicle is worth because it is from the interest payments that they are able to make their money. These interest rates are usually very competitive and very affordable. Car finance is ideal because it allows you to purchase an expensive vehicle and pay for it over the course of several months/years, by making affordable monthly payments. If you go with the right deal, car finance is actually anything but a rip off.

Some colours of car are more expensive to insure than others

We’re not quite sure where this myth originated from but take it from us that it is simply not true. Some people claim that black cars and red cars, are more expensive to insure than others. We don’t know why people assumed this, but it is simply not true at all. It is incredibly rare for an insurance company to even ask what colour your car is, so please do not avoid red or black cars if you are trying to save money on your insurance because in reality it won’t make any difference at all.

Credit scores don’t matter

When you are looking to pay your insurance on a monthly basis, insurance companies will check your credit rating. After all, they want to know that they are going to get their money on time, and your credit rating will help reassure them. If you have a poor credit score, getting car finance will be much tougher, as will finding affordable monthly insurance deals as well.

Interesting Car Finance and Motoring Facts You Probably Hadn’t Heard Before

For many of us, our cars aren’t just oversized boy’s toys that we get to play around with at the weekend. No, they’re our lifelines. Without a means of transportation, even the most trivial of tasks becomes a chore. Thanks to car finance and various other payment options, it’s now possible for us to own expensive vehicles and spread the cost out over several years to help keep payments low. If you’re a fan of the motor industry however, this article could prove particularly interesting. Below we’ll be listing a series of car finance and motoring facts that you probably won’t have heard before. So, without any further hesitation, let’s begin.

The UK produces a lot of cars

Although the manufacturing of motor vehicles isn’t the first thing that springs to mind when we think of the UK, the truth is that we produce a heck of a lot of cars. In fact, on average, the United Kingdom produces more than 60 million cars every single year. That works out at roughly 165,000 cars per day. That’s pretty-impressive, we’re sure you’ll agree.

The world’s very first speeding ticket

There are fewer easier ways to find yourself in a bad mood, than to get home, check the post, and see that you have been issued with a speeding ticket in the post. We know that speed limits are in place for a reason, but sometimes they aren’t clearly signposted, and sometimes people simply aren’t paying attention, and consequently they pay the price – literally. The world’s very first speeding ticket, however, was issued over a century ago. It was issued back in 1902 and was issued to a motorist travelling at 45mph.

We spend a lot of time stuck in traffic

When you’re feeling stressed and agitated, going for a nice leisurely drive through the countryside is a great way to unwind. Sadly, not all of us can afford this luxury on a regular basis and some of us find ourselves stressed and agitated because of traffic. In the UK, the average driver will spend an average of 99 days of their life stuck in traffic. Now, if that’s not soul-destroying then we don’t know what is.

Ford were responsible for car finance

Nowadays we take credit for granted as we can get it for virtually everything. Way back in 1908 however, the world’s first mass-produced vehicle was the Ford Model-T. It cost $850 at the time, which is now the equivalent of $20,000+. Needless to say, not everybody had that type of money to spend on a car. To help boost sales, many dealerships offered this vehicle to paying customers via instalment loans. Back then it wasn’t regulated, but the premise was still the same as it is now when it comes to car finance.

The inventor of cruise control was blind

Ralph Teetor was the man responsible for inventing cruise control. Ralph was an inventor and the president of car vehicle manufacturing company. He was also blind so didn’t drive himself. After one too many car trips with his lawyer, Ralph decided to invent cruise control. The story goes that his lawyer was a bad driver that would always slow down when speaking and speed up when listening. By 1958, the world’s first cruise control unit was used commercially thanks to Chrysler.

4 Benefits of Car Finance

When it comes to investments, there are some things in life that are guaranteed to increase in value. Gold is generally a prime example, as is property. But what about some investments that don’t pay dividends? Well, as fantastic as they are, a lot of people will tell you that cars lose value the second they leave the showroom.

To many of us however, we don’t care as we take great pleasure in driving around stylish motor vehicles. Rather than buying a used vehicle however, it might be worth looking into car finance instead. Here’s a look at some of the main advantages of choosing car finance.

Flexible payment options

One of the best things about getting a car on finance is the fact that it provides you with flexible payment options. Depending on the type of deal you get, and the deposit you put down, you can split your payments up into monthly instalments over a prolonged period of time. The longer the finance deal runs for, the less you will pay each month. Having this type of flexibility is very beneficial as it means you can pay a small amount each month and still have plenty of money left to cover other expenses such as, you know, living.

Purchase a nice car

Let’s face it, with bills to pay and lives to lead, not everybody has the luxury of being able to afford to pay thousands on a car, either new or used. Because of this, some of us are forced to spend a few hundred and buy a cheap, used banger just to get us from A to B. Normally these cars fail their MOT or break down so we wind up having to spend more anyway. By getting a car on finance however, you can purchase a newer, nicer, more reliable vehicle and still have plenty of money left to cover your other living expenses etc.

Safety

Another thing we don’t often consider when buying used cars on the cheap is the fact that as they are normally older, they lack certain safety features and are therefore more dangerous to drive. If you get a car finance deal and buy a newer car however, the car will be newer which already makes it safer. On top of that, it will also have more safety features and technology in general. Newer cars have parking sensors, cameras, ABS brakes, emergency braking, and much more besides. Car finance gives you the ability to purchase a safer, more advanced car, without spending a small fortune all in one go.

Save money

We know that with car finance you do wind up spending slightly more than the car is worth overall, but even so, you still end up saving a significant amount of money by going with a newer car. As the car is newer it is more reliable, so you’ll have to spend less on parts and repairs. What’s more, many new models are also road tax exempt as they give off such low emissions, so once again, that’s another saving.

For many of us, a car isn’t just a luxury, it is a necessity that we rely on in everyday life. We use our cars to take us to work, to pick the kids up, to run errands, and of course, to go out to fun places on our days off. So then, the last thing you will want to envision is your four-wheeled pride and joy suddenly deciding to break down one day and never work again.

Unfortunately, at some point in time that scenario may come to fruition, leaving you in desperate need of a replacement car. And fast. Before rushing out to pick up a replacement however, it pays to do your research. From a lack of car finance to failing to read up on online reviews, here are some common mistakes people make when buying a car.

Buying cheap used cars

It’s never nice when your car decides it’s had enough, nor is it ever cheap. If you intend on getting a replacement car however, it isn’t recommended that you buy a cheap used car. If the car is cheap, it’s cheap for a reason. It will likely be old, will have too many miles on the clock, and could have other underlying mechanical issues as well. This means that it will likely break down fairly quickly, meaning you have wasted your money buying it, and will need to spend yet more money on getting another replacement. Some used vehicles work incredibly well and work for years, but it is a risk.

Not considering car finance

To some people, cars are seen as wastes of money and so they only decide to ever go with cheap vehicles. Often, they find that these cars break down. They fail to consider car finance as a viable option, when in reality it could save them money. Car finance allows you to get a newer, more expensive vehicle by paying it off in instalments, rather than all in one go. This flexibility with the payment means that you can enjoy a nice car without spending a fortune in one sitting. A newer car will be nicer, will last longer, will be cheaper to run and maintain, and will also be safer.

Not reading reviews first

Whether you have your eye on a specific model of car, or on a specific garage or dealership, you should always do your research and read reviews first. See what others have to say about the car, and/or the dealership or garage in question. If you are coming across negative feedback, or a lack of feedback and reviews, this is worrying as you could end up being sold a dud. On the other hand, if you are finding plenty of positive feedback and reviews, this is certainly a good sign.

Letting your heart rule your head

In an ideal world we’d all drive the cars we want, but sometimes that isn’t practical. If you are already on a budget and want to save money, buying a powerful car that gets poor MPG is not a practical decision. If you have a large family, a 4-seat convertible is also not practical. Yes, when buying a car, often you should listen to your head instead of your heart.

When it comes to investments, used cars are probably not up there as being the wisest choice. Unless you purchase a classic or supercar, the second you drive the vehicle out of the showroom it loses value. The thing is, we don’t buy cars with the intention of making a profit when we sell them (unless you’re a car salesman).

 

We buy cars because they’re practical, they’re necessary in many cases, and they provide us with fun. Buying a used car is always a risk, even if you get the best car finance deal possible. To help ensure you get the best price possible, and the best car finance deal possible, here are some tips for buying a used car.

Don’t ask for their best price

A lot of people when attempting to haggle over a used car, will ask the salesman what his best price is for the vehicle. Basically, they’re asking him for the lowest price he would sell it to them. The thing is however, is that by doing that you are putting the salesman in control.

He can come up with any figure he likes, and obviously he’s going to overinflate the price because he wants to make as much commission as possible. Instead, be open and honest and tell him how much you are willing to spend. Be firm, stand your ground, and don’t get into a haggling war. If the salesman is convinced that you are not open to negotiate the price, there’s a good chance you’ll get it for what you want to pay, and on your terms.

Consider car finance

In an ideal world, when we buy a used car we’d always pay cash for it. The reality is that if you are buying from a car dealership, the car will cost thousands of Euros, so monthly car finance payments may be your only option. With finance you do pay slightly more than the vehicle is currently valued at, but it makes your monthly payments more manageable. Always shop around for car finance, as you may get some great deals.

Be friendly and polite

A lot of people like to think that they’re a big-time business tycoon in the board room, and so when they enter into negotiations over a used car they’re often stern-faced, abrupt, and sometimes rude. If you’re rude to a salesperson, or any person that you’re doing business with for that matter, they aren’t going to go out of their way to help get you the best price possible. Be polite, smile, and be friendly. You never know, it may help knock a few hundred Euros from the price that you pay.

Don’t be sucked in by the hard sell

After you negotiate a deal on a used car, the next thing you need to prepare yourself for is the onslaught of upselling the salesperson is about to hurl your way. The salespeople make good commission on things like: paint protection, upholstery protection, gap insurance, and so on, and they will do their best to convince you that you need all of these things. Stand your ground and be firm with the fact that, almost certainly, you don’t need these things.