Financing you car can be a tricky business. For most of us, it can be a confusing, frustrating and complicated process, but don't worry, you're not alone, many people don't know how to finance a car and what it entails. So follow these five top tips for an easy and stress free road to financing your car.
1. Do your homework
The most important thing is to know what you want, and how much you can afford from the beginning. It's worthwhile doing your homework before you start shopping around. You don't want to get caught into something you don't want, need, or can't afford. This will give you the focus and drive to get what you want, and the information to enable you to do it. This is half the battle, and getting yourself straight before you start shopping can make financing your car a much more agreeable process.
2. Clean up your credit
Your financing deal is going to be based around your credit history, so it makes sense to get it sorted first. It's a good idea to get hold of your credit report a while before you're looking to buy, as you can then spend some time rebuilding or repairing it if necessary, and there are a number of ways you can do this. A better credit report means a better loan and ultimately a better way to finance your car.
3. Shop around
Don't just fall for the first deal you see, take your time and shop around to see if you can find better rates. Dealers love to outdo one another, so take your deal to another financier and see if they can beat it. Also look out for special offers, if they come at the right time they can be very beneficial. Like anything, you will find deals inside and outside of your price range, so make sure you get a good picture of the market and where you fit into it before you sign up.
4. Know what you're getting yourself into
It pays to be thorough. Before you sign on the dotted line make sure you know what you're getting yourself into. Lots of financiers will bamboozle you with numbers and quotes and deals, so it pays to get clued up on the ins and outs of finance deals before you sign anything. It can be a confusing process, so get as much advice and information as possible on what all the terms, deals and documents mean before you start looking - this will help you down the line when you're talking to a dealer.
5. Be prepared to haggle
Haggling is the oldest trick in the book, but it can still work. You never know, you may find what you want is just out of your price range, and haggling can be a great way to get the price down and get yourself into a brand new car.