Finding the right car for yourself is a challenge alright, but it’s nothing when compared to the payment decisions you have to make. In such situations, car finance is what you seek immediately.
What is car finance?
Car finance is a form of personal loan, which is especially taken for the purpose of buying a car. You have the option to select the repayment plan according to your needs. You get to make a plan where you can pay back the loan amount for the next five to seven years maximum. This way, you can afford a car, as well as use it at the same time while making instalments. For most people, monthly payments of car finance are very cost effective.
Car finance—how to get what you want?
Do you know that in 2015, Britons bought a record breaking number of new cars? Approximately 2.5 million cars were purchased and it is predicted that this number will steadily rise in the coming years.
Check your credit score at Experian
When you’re out to buy car through car finance, it’s always recommended that you check your credit score first. Contact the Experian credit report company and check your rating. This will help you in knowing where you stand while filing the car finance application. It also gives you the option of using several ways to build your credit history if you don’t have a good credit report at present.
Build up your credit score if its low
Usually this is how it works: if your credit score is high, you will get a much better deal as compared to the people with average or below average credit rating. Sometimes, lenders refuse to offer you car finance because your credit reports show that you are a very poor debt payer. Even if you have a low score, remember that it’s not that difficult to build up good credit, and within a matter of months, you will be good enough financially to apply for better car finance.
Look at the different car financing options
Normally, it’s advised that you shop for the best car finance deal in town. Car finance deals are like any other items you buy at the market, you get to shop around and juggle for the best one. Sometimes, due to the competitive nature of the market, you accidentally stumble upon very good car financing companies. So, keep an eye open.
Learn to know how and when to make a deal. You have to be very responsive regarding loan payments and your credit report must speak highly of you. Lenders like responsible borrowers when it comes to their loans. Missed repayments or late monthly installations will speak negatively on your behalf, and you don’t want that to scare your loan company away from you.
Points to remember: Missed repayments stay on your credit report for at least six years, so it’s essential that you commit and fulfil your payments.
Make sure you stand your ground
There are so many car finance companies and lenders existing today that sometimes you may be overwhelmed. This is however, very natural. You just have to know when you have to press for more and when to walk away from the deal.
There are different pros and cons of every car loan provider. It’s not necessary that you have to buy the first few car financing deals you are offered. Some people like to make a down payment and then pay the rest of the amount in monthly instalments, while others go to specialists and brokers to get their old cars exchanged with new ones.
Small tips for buying a new car
As soon as you decide that you’re getting car finance, remember to follow some of the following car buying tips.
First things first, buying car finance is more than getting a car and making monthly instalments. You should know every single detail about the car financer you are opting for. This is important because it’s the little details and overlooked fees that will matter once you sign the deal. To know about your car finance deal, you have to make a good and well-planned research online. Your research material is your reference, which you can productively use in your favour.
- Make sure you are signing on the dotted line only after knowing what you are getting yourself into.
- Consider all the additional costs and hidden payments that are included in the deal.
- Ensure you are able to make monthly instalments with ease, because if you can’t, there is no point in going for a car loan.
- Always keep the additional extras at the back of your mind. Such costs include maintenance costs, road taxes and insurance fees. Also, don’t forget to add the monthly fuel expenses that will come after you get your hands on the car.
Buying a car through car finance is a good option, if you use it smartly. With car financing, you can actively work towards building your credit score. As you pay your monthly instalments in a timely manner, your credit score and ratings will surge and you will become a good borrower in the eyes of all lenders. A healthy way to opt for any car finance deal is to look it up on loan comparing sites such as QuiddiCompare. You can compare, judge and find the most suitable car loans here. This will ultimately make your decision easier. For loan recommendations, to the best deals in your area, as well as affordable interest rates, good features, and useful information regarding any kind of loan, you can find it all here.