The best thing anyone looking to buy a new car (truck, caravan, boat, motorbike, and anything else really..) can do is make sure their finance is sorted out first. I know that doesn’t sound nearly as exciting as going out test driving cars, but it can save you a lot of cash!
Most people who decide to buy a new car spend lots of time researching the car, either online or by visiting lots of car yards. Unfortunately most people don’t spend much time working out how they will pay for it.
Avoid Buying a Car This Way:
For a lot of people the process of buying a car goes something like this:
- You decide to buy a new car
- You think about the style you like and what you need to carry in the car.
- You look at cars online or in dealerships
- You research the details of the car, the fuel economy and safety features
- You find the car you want and negotiate to get the best price.
- You then take whatever finance is offered to you by the dealer, or by a quick visit to your bank, so you can drive away in your new car!! Sometime later you see ads for cheap car loans and wonder why your repayments are so high!
Don’t get caught out!
This is a crazy way to buy a car because you spend time shopping around or haggling for the best price but then pay more on the loan because you haven’t shopped around for the best car loan deal.
People don’t really love shopping around for a loan (and I get that!) but it is something you will be paying off for several years so you want to be sure you get a good deal. If I wasn’t working with peoples finances every day and seeing the amount they pay on car loans I probably wouldn’t think much about it either. But spending too much on your car loan means that your other goals will have to wait – the house, the holiday, the boat, the motorbike,…..
Within this site I will be giving you insider’s tips on getting a loan for your car, boat, caravan, truck, motorbike, but more importantly, I’ll be explaining some of the things to watch out for in a loan. Getting a loan isn’t just about buying the car, boat, truck, but it is about the impact that the purchase has on your lifestyle and achieving your other goals.
You want to buy a car or other equipment but not be a slave to your loan for the next 5 years.
To get the best loan, planning is a big part of the process. If you want to get a good price for the car AND a good interest rate, there are things you can do to make yourself attractive to the lender.
Applying For a Loan is Like a First Date!
Think of this as a dating game. You want to be looking your best (financially) when you apply for the loan. It’s worth putting in that bit of extra preparation to make a good impression – and it can save you money every month.
To give you an example, having credit cards even if you never use them or you pay them off every month, will reduce the amount of money you can borrow. This is because the lenders know that you could buy the car today and then go out tomorrow and spend all the money available on your credit cards. Then if you can’t afford your car repayments every month the lender has to take back the car and sell it. This is risky for the lender, so they may increase your interest rate if you have lots of money available on credit cards.
It’s not difficult to get yourself organised to make the best impression on a lender, and I will take you through the steps to do it.
I have looked at lots of car loans and would love to hear about your experiences with car loans that didn’t end up working out for you. Please leave me a note below and I will get back to you right away!