How to find the best deals on car finance

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.