Buying a new car is likely to be one of the most significant financial commitments you will ever make. Luckily there is much that can be done to get you the car that you want at a price you will be happy with.
1) Before you start to take a few cars for test drives, get your finances sorted out. Many car dealerships will try and temp you with their own financing plans, but these may not be the most cost effective. Shop around to find the best source of financing.
2) Provide as much as possible as a down payment. The more you provide as a down payment the less you will need to borrow. The more you pay as a down payment then the less interest you will need to pay back each month.
3) Find a co-signer if you have a bad credit rating. A bad credit rating can mean problems when looking for car finance. You may find a source of cost effective bad credit car loans but another option is to get someone with a good credit rating to act as a co-signer in your application.
4) Get the most you can for your old vehicle. Trade ins can give you a good deal on your car and save you the headache of advertising and selling your car. Be sure to get the most you can for your old car by preparing it thoroughly.
5) Shop around, haggle over price and look at alternative financing choices. The economic downturn has meant that there are some incredible bargains in the automobile industry. Garages want your business so this can be used to your advantage. And it’s worth looking at other financing options. Car leasing is a great way to get the car that you want for a reasonable down payment and affordable monthly repayments. If you are looking for a commercial vehicle you might want to consider van contract hire to provide your business with what the transport you need.
