Car Loan Advice That Can Help You Get The Best Deal
If you want to get a new car but dont have any capital then there are a number of credit finance options available
. It is important to research these carefully to ensure you get a finance deal that can offer you the capital you need at a competitive rate of interest.
Credit Rating
Every consumer has a credit rating and this will determine what finance deals they will be eligible for. It is a good idea to check your credit rating so that you will know what types of deals to apply for. You could be wasting your time applying for the low APR deals if you have a bad credit rating. This is because lenders will not offer low APR deals to high risk customers with bad credit histories, so you will most likely have your applications refused. If you are having trouble getting a good finance deal you may have to work on your credit rating first before you apply for any more deals. You can do this by making sure you have cleared any outstanding debts and meet your existing repayments consistently each month.
Internet Research
You can quickly and easily compare many different finance options online from lenders. You may also be able to find some great deals that are only available online. You do need to know how much you want to borrow and also the repayment period you would prefer (two to five years for example) before you start looking for finance deals. This will help you narrow down your search.
Personal Loans
You could finance your new car with a personal loan. There are a number of personal loans available from banks, building societies and other lenders so make sure you take the time to compare deals and find the one that suits you best. Personal loans can be secured or unsecured. Secured loans will be backed by an asset and in this case it would be the car you are purchasing. If you do not keep up with your repayments you could lose your car and still need up owning the lender money. Unsecured loans are not backed by assets, but these can be more difficult to get if you have bad credit.
Dealer Finance
Many dealers offer finance and this can be a practical choice. The majority of personal loans have increased in APR following recent financial upheaval in the banking world. This means that many of the finance packages offered by dealers have now become very competitive and could save you money in the long run. Dealers can also offer some very attractive manufacturer financing options that not only offer low APR but also come with extended warrantees and other great bonuses.