Once you know what car you want to buy and how much you want to borrow, the next step is to find a cheap car finance deal. The best and cheapest deals can be found on a specialised website online.
A specialist car finance company can search the whole market for you to make sure you get the best deal possible. However, there are some things you need to know before choosing the best deal from the quotes the specialist gives you. Of course, the first thing you need to think about is how much interest you will have to pay on the loan. The amount of interest you pay depends in part on your credit score. If your credit score is low, you won't get the best interest rate. But a specialist will be able to get you the best deal for the least amount of money, and a good credit score will get you the best deal with the lowest interest rate.
When comparing the deals a specialist finds for you, you need to make sure you know what you're comparing, read the fine print, and make sure the loan doesn't have any hidden costs, like fees for paying it off early. Check out the list of important details so you can take your time reading them and understanding what you are getting and how much you will have to pay back on the loan.
Along with searching for you and finding the cheapest quotes and best deals from some of the best lenders in the UK, they should also give you a lot of advice and helpful information about car financing in general and tips to help you choose the right loan. Don't be tempted to get car financing from the dealership if you're buying your car there. Even if the dealer knocks money off the price of the car to get you to buy from them, the interest rate will almost certainly be higher than if you had gone with a specialist car loan broker.
When you get car financing, you should know that, like with any other type of loan, the lender will try to get you to take out some kind of payment protection in case you lose your job. This can be a good idea, but not everyone needs it, and if you do want the protection, you can get it on its own and often for much less money.
First of all, make sure you can pay back the loan. You will have to decide how long you want to take to pay off your car loan. You want to keep your payments low, but the longer you take to pay off the loan, the more interest you will pay. Check the terms and conditions of any loan you want to get, and don't be tempted to take out a loan just because it seems like a good deal before you've looked into it well.
