Buying a car will be one of the biggest financial commitments you will make in your life. But there are many things you can do to lessen the financial impact and get the car you want at a price that will make you smile.
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) Always pay as much as possible as a down payment. The more you pay upfront the less you will have to borrow. Adding just a little to the down payment means less interest on the loan and less to pay back each month.
3) Find a co-signer if you have a bad credit score. If you have a bad credit rating you will run into 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 best price possible for your old automobile. Trading in your current car can give you a good deal and save you the headache of selling your current car. Get the most you can for your old car by giving it a good clean, making certain it is serviced and that you have the service history.
5) Shop around, haggle over price and look at alternative financing choices. The current recession means that there are some exceptional new car bargains to be had. Garages want your business so this can be used to your advantage. And don’t overlook 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.
