Car Loans – Tips and Advice on Getting The Best Deals

You should choose the type of car financing that best suits your needs and most importantly, your budget. However, here are some tips and pointers on how to navigate the maze of car buying and car financing.

• Divorce your loan negotiations from the car price negotiations. You should negotiate the price of the car with the dealer before talking to him about financing. If you do both at the same time, you will end up with a higher car price than you would have.

• Always look around for the deals. Carry out a market research on what is available and the average prices. Only then can you settle for any one deal.

• You should always know your means. There is no need to settle for a deal that will be difficult to meet its obligations as and when they fall due. You should calculate how much you can realistically afford in terms of monthly payments. This should enable you to narrow down your options.

• Look online for car loan options. The internet makes your search easier, has more options and possible better deals. You can use a search engine such as Google to help you find the deals.

• Never approach a car dealer without knowing what is available on the market. Having the necessary information puts you in a better bargaining position and you can identify the deals from the steals.

• It may be a good idea to arrange car financing through a car dealer rather than approaching the lender yourself. You are more likely to get a better deal through the car dealer.

• Always look at the fine print in your car financing agreement before signing on the dotted line. Some agreement may include hidden costs. Find out the total amount you will have paid up at the end of the financing period.

• If you are buying a second hand car, always check its history. The second hand car may have a caveat or may be stolen. There are companies that can be paid to do the car history checks. The check are done by Experian Ltd (Autocheck services) and HPI Ltd. You can also get in touch with the DVLA (Driver and Vehicle Licensing Agency) if you have any concerns or questions.

Checkout the Finance and Leasing Association (FLA) website for useful tips and information on car buying and financing. The FLA is a trade association in the UK.