These days, buying a car doesn’t necessarily require a great deal of cash; there is an extensive range of different finance packages – personal loans, hire purchase, leasing agreements etc – available for a new buyer to choose from. The trouble is, with so many companies offering so many car finance packages, how do you go about securing the best deal? Let’s take at look at some of the ways to secure the best possible deal that’s right for you.
- You have bargaining power
Many dealers can actually make more money from selling a finance package than selling the car outright, which means you have a degree of bargaining power if you’re looking to take out a finance package to pay for the car. If you have a good credit score, then personal loans offer the best APR. If you have bad credit car finance packages are still available to you, but expect to pay higher interest rates. Don’t just stick to one dealer; visit two and try to play them off against one another. In this climate, your business is valuable, and they’ll bend over a long way to get it.
If you are making a cash purchase, then it’s still worth getting a personal loan quote, as this could help you to negotiate a better price on your dream car 2017 subaru impreza.
- Ask directly for the APR
The quickest, easiest way to compare credit deals from different companies is to look at the APR. Make sure the details are identical – same loan amount and duration – if there is a difference, ask why. Many salespeople will attempt to avoid the discussion into APR rates, or use the flat rate as an example of APR to make the finance package appear cheaper than, in all likelihood, it probably will be. Ask the dealer directly for the APR of the finance package you want to take out; get the figures for both monthly fees and interest, and then compare the answer with other finance packages.
- Do the Math
Repayment periods vary, but the rule is the longer the repayment time, the lower the monthly amount. However, this doesn’t necessarily mean you’re saving money; an extra year or two on the finance package may mean less each month but a great deal more overall. To avoid this, do the sums when you sort the terms of your repayment period. If you can afford to pay that little more per month and reduce your repayment period by say, 12 months, then its worth considering that option.
- Be Patient
Salespeople will often try to pressure you into agreeing to their terms to close the deal, but stand your ground and be patient. Don’t allow them to put pressure you; in the majority of cases, the deal they offer will actually improve in time, regardless of what they tell you.
If you’re looking to purchase a new car, remember – you are the buyer and you shouldn’t ever feel compelled to part with more of your money that you want to or can afford. Don’t be intimidated or pressured, and do your research; a little extra time and homework could save you big bucks!