When it comes to making a car purchase, paying for it is a big part of the battle. Even mid-level new cars run into the £20,000 range. Because of these prices, few people can pay cash for cars anymore and statistically about 7 out of every 10 people use car finance to pay for their new vehicle. In order to get the best car finance possible, you need to understand how the whole process work.
First, you want to figure out where you are going to get your car finance. There are a number of institutions that can get you financing. Banks, credit unions, the dealership, or even car manufacturers can provide financing for your new or used vehicle. If your credit is anything but perfect, you need to come to Infinity for your finance. Infinity approve hundreds of customers each day and all our customers have less than perfect credit.
Second, with car finance, you need to realise that whether you buy a new or used vehicle it will affect your financing offer. As a general rule, interest rates will be lower on new cars than on used ones. Also, new cars can often qualify for financing over a longer period of time than used cars.
The Small Print
Next, when it comes to car finance plans, don’t believe everything you see or read. Commercials for special financing for those who are first time buyers or have bad credit are rife in papers and on the television. These are usually a little too good to come true and come attached with requirements such as high deposit payments and extremely high interest rates. In some cases, both apply to the loan.
Know Your Credit file
Before you go and apply to get your loan, make sure you know about your own credit history. Get a copy of your credit report and go over it with a fine-toothed comb. Look at the score as well as the payment histories on it. If anything at all looks incorrect, make sure you get it cleared up. When a lender looks at how much money to give you, they will check out your debt ratios, how long you have been at your job, your history with similar loans, and your credit report as a whole.
Once you are armed and ready to consider your car finance. It is usually a good idea to look for the financing before you buy the car. You will better know what you qualify for that way. Also, you can use your information to bargain further with the dealer.
Remember that everything is negotiable. Just because the car finance rate you got is pretty good, it doesn’t mean that you have to pay what they ask. Negotiate the price of the car, or anything else you can talk to them about. It can’t hurt and you could save yourself a lot of money that way.
Always know that car financing may seem complicated, but it doesn’t have to be. For more information contact Infinity Finance on 0161 292 8200 or visit www.infinityfinance.co.uk