Financing your prospective new car is only a headache if you’re not focused, diligent with research or using the right car loan company. It’s true that many people let emotions get in the way of making practical and good financial decisions in this process. A car is a big-ticket item. Arm yourself with the right information and resources, and you’ll find the process of purchasing your dream car seamless and fuss-free.
Read on to discover some quick tips on how to finance your car with minimum hassle while you maximise the dollars you are spending on this large purchase.
Decide on the car you need
Make sure you thoroughly research your car and make sure it’s the right car for you. Take the time to read car reviews to see how your prospective car will fare in all weather conditions, its fuel economy, external and internal features (including tech) and the important specifications you’ll have to live with for many years to come. Reviews are extremely important because they help you remove the emotion from the equation and help you to focus on the value you will soon be paying for.
There are numerous tools and apps on the market that make budgeting easy. Use technology to quickly ascertain what car you can afford. Then use a loan repayments calculator to work out weekly repayments. Match this against your budget to make sure you can afford the car you are considering.
Be sure to factor the following into the equation:
- Registration fees
- Roadside assistance
- Car maintenance
- Car use (City or regional)
- Car Accessories
Make sure you thoroughly do your homework. Weigh up the benefits of buying a new car versus a secondhand car. Businesses will often find advantage in purchasing a new car, while others will find it much more cost-effective to buy secondhand if they don’t have the option of using their car for a tax deduction.
Tip: A reputable car loan company like Turn Finance can assist you with check on car ownership and making sure the car you are purchasing does not have any current finance against it.
Here are few more quick tips to consider when buying a new car:
- Terms can vary between 12 months and 7 years
- Shop around for the best service and interest rates
- Read reviews on Facebook and online to make sure the car company you are dealing with is reputable
- Learn more about balloon payments
- Decide on a fixed or variable rate loan
- Ask your broker what early termination fees are
- Read the fine print about account fees and charges
- Be wary of ‘loan scams’ online – make sure you read reviews and deal with only reputable companies
- Getting the right loan is as important as finding the right car
- Make sure you get a good deal on insurance for your new vehicle and shop around
- Consider other insurance products like loan protection or gap cover - should unlikely events arise during the course of your loan