Buying a new car will probably 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 for the best financing deal.
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 score. A bad credit rating will give you problems when applying 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 as much as you can for your old car. Trade-ins can be a good option, saving you the headache of advertising and selling your 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) Haggle over price, shop around and consider alternative financing options. The current recession means that there are some exceptional new car bargains to be had. The car showrooms 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.
