Buying a new car or second hand car on finance can be rather expensive and since buying a new car comes with risks, it is important that you know what questions to ask and what things to look out for so that you get the best deal.
As a comparison site that cares about its customers, we give you all the useful tips you need to consider before buying.
With so many different rates and offers available, those looking for car finance should shop around or use comparison sites like Quiddi Compare.
We provide an easy way to compare car finance in the UK. With several leading companies on our website, you can use our comparison tables and tools to choose how much you wish to borrow towards the car, bike or van of your choice. If there is a deal that suits your requirements, you will be able to apply with the car lender or dealership directly through our website.
The simplest way to compare the cost of borrowing is to look at the APR and the interest rates. Make sure you also consider the extra costs of the loan including the charges incurred for a leased vehicle going over its agreed mileage. Other costs include early repayment and things like PPI and GAP insurance which covers your car in the event of a write-off.
Finance providers will have different rates available for those with good and bad credit and paying a higher deposit will likely lead to a lower interest rate.
When eventually picking up the vehicle from the dealership or car lender, it is essential that you have a good test drive to check the quality of the vehicle. It is recommended to drive for at least half an hour and practice doing turns and reversing – you should not just take the salesman’s word for it.
Other things to check with the seller include the vehicle identification number, V5 serial numbers and a recent up-to-date MOT to ensure the vehicle is valid and safe to drive on the road. If you can get the car’s plate number, you can do a car history check by getting an HPI check online. This will tell you if the vehicle has ever been stolen, written off or has outstanding finance.
Paying the deposit for the car is just the beginning. You also need to consider the ongoing costs such as maintenance, petrol and insurance. How much mileage you do will have an impact on these costs as the more driving you do, the more petrol and maintenance you will require. Bigger engines and 4x4s also tend to use more petrol than smaller cars and this is worth considering when choosing your car.
So making sure you have budgeted for these additional costs is essential as failing to keep up with monthly repayments can lead to added fees, a negative impact to your credit rating and potential repossession of your vehicle.
Furthermore, if the vehicle has very specific parts and requires a specialist garage, you will want to know if there is one in your local area, otherwise this will increase the cost of any repairs.
Don’t just take the first car the salesman offers, make sure you do your homework before buying. Reading through car magazines or online reviews, you can get an idea from other car owners and their experiences with the make and model.
To make sure that you are getting a good price, you can always get a free car valuation online. The price will obviously vary based on how old the vehicle is and how much mileage it has on the clock. One would expect the price to be slightly above average if you are buying something on finance as the lender has to charge a fee too.
Also, if you’re looking for car finance with bad credit, the cost may be slightly higher as lenders need to consider the risk of default. But if the price being offered by the lender is way off, you know that can potentially bargain.