HOW TO FINANCE YOUR NEW CAR
When you’re considering buying a new car, there’s a decent chance you could need a loan for it. Car financing is a booming industry, after all. It’s easy to see why, as few people can afford to buy a new car outright. But, that doesn’t mean you should just agree to anything you’re presented with.
You should always make sure you know what you’re agreeing to. These tips on how to finance your new car are sure to help with this. With how important the decision is, you’ve no reason not to use them from the start. Three of these stand out more than others.
Aim for Short-Term Loans
With any kind of loan, you’ll have the option for either a long-term or a short-term loan. Long-term car loans can often seem more appealing, as you’ll have lower monthly repayments. That doesn’t mean it’s always worth going for them, as there are a few notable drawbacks.
Depending on the overall length, you could end up still needing to make repayments well after you’ve gotten rid of the car. Nobody wants to end up in that position. Short-term loans could be much better because of that, even if it means paying a little more every month.
Be Wary of PCP
Personal contract purchase (PCP) used to be an inherent part of many car financing agreements. Dealerships used to work these in as an extra cost, and it can still be a part of many agreements. That doesn’t mean it’s always above board. Plenty of Motonovo car finance claims have resulted in missold PCP.
Make sure this doesn’t happen when you’re getting your car purchase financed. Taking the time to figure this out makes sure you don’t pay more than you should. It’ll also help you avoid more than a few headaches later on.
Time it Right
Timing can be everything when you’re buying a car. By buying at the right time, you could end up spending noticeably less than you would have otherwise. This directly affects your car financing agreement. That doesn’t just mean you’ll need financing for a lower amount than you would have.
Instead, you could end up getting a better deal during certain times of the year. That could mean lower interest rates and more favourable terms. Buying in October, November, or December can always be a better option. You should end up saving more than you would’ve thought by shopping during these months.
Buying a new car is expensive, so it’s easy to see why so many people opt for financing. As natural as this is, it doesn’t mean you should just agree to anything. You’re much better off making sure it’s all above-board before you sign an agreement.
Using these tips to finance your new car helps you make sure everything’s the way it should be. By putting the effort into them, you shouldn’t have a problem making sure your car financing is perfect. With how large of a decision this is, you’ve no reason not to put the effort in.
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