Top 5 tips for getting the best car finance deals

There are many types of finances when it comes to funding a car and you’ll often need to compare different types of finance options that are available. We’ll do the heavy lifting for you – and share the tips and tricks on how to grab the best car finance deal.

Firstly, keep your credit score in mind, is it good, bad or somewhere in-between? When you’re aware of this information, it’s much easier to pick the right finance deal. It is also possible to check whether you qualify for finance from various dealerships by going through a soft finance search. It’s not the full credit search and won’t show up on your files, which in turn, will not affect the credit score rating.

If your credit is good…

You have access to almost all of the car finance – including 0% APR and no deposit, in addition to the traditional Personal Contract Purchase (PCP), Hire Purchase (HP) and Personal Contract Hire (PCH). Please note though, it varies based on different dealerships.

If your credit is bad…

A few specialist lenders also offer bad credit car finance for those that have a low credit score or had difficulties in the past.

Tips for finding the best finance deals

  1. Pay attention to the overall costs.  See the bigger picture – it is easy to get mixed up and enticed by the low monthly payments. However, what about the deposit, interest and APR? So be careful and add these up to see the true price.
  2. Negotiate and question. Don’t be afraid to negotiate with the dealers to get the best deals. You can haggle the price down – around 10% is excellent – either off finance, monthly price or maybe even both combined. And here’s the most overlooked tip to get the best car finance offers – you should try and remain polite during all of this process.
  3. Do your research. Before stepping a foot into a dealership, keep in mind which car you want, and how much you’re willing to pay for it. This way, you won’t get charged with extras and other additional fees. But that’s not enough, consider learning at least the basic car finance jargon – do you know the difference between HP and PCH or balloon and guaranteed future value (GFV)? If not, take your time to learn, and it will pay off for years to come.
  4. Shop around. Say no if the deal isn’t good enough and you feel over-charged. This way, you won’t have to commit to a years-long contract with less-than-favourable prices. Visit a few dealerships to see which ones offer the most suitable deals for you.
  5. Study your contract. It may be common sense, but before signing the contract, make sure to understand what you’re signing up for. See if there are any hidden charges, such as, rustproofing, extended warranties, life & disability insurance, and others.

There are also end-of-contract lease charges –excess mileage, missed servicing, interior or exterior damage. So make sure to familiarize yourself with all of these charges to avoid nasty surprises.

And here is the round-up of the top car finance tips. Did you ever take out a car finance deal, if so how did it go? Let us know in the comments!

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