Finance hints and tips
Being offered a car finance deal is second nature to a car dealer, it’s an added profit arm, and with such a wide range of choice, can be confusing, and car financing may not be the always the cheapest option.
If you should become ill or get made redundant, you will be offered the option of attaching Personal Protection Insurance or PPI. When being getting a quote find out if it has been included or not, as it can be quite expensive. It also has its limitations; it will not cover any pre-existing illnesses, the self-employed or contract workers.
Go for a Bargain
When you are near to making your choice of vehicle, there are a few things to give a bit of leverage where car finance is concerned. Don’t forget the car salesperson wants you to have the finance because they are going to get the commission and it helps their margins and targets. So what will help?
Do your own credit checks, to make you have a good credit score.
If you have the cash to buy a vehicle, obtain personal loan quotes as you could use these as a tool to get a better bargain.
Visit more than one dealer, although it may not seem fair, don’t forget it’s your money. Play one against the other if you have to!
Know your APR
When a dealer talks about finance deals they only quote the headline rate this is because it appears cheaper but this is not the same as the annual percentage rate, which is the most important rate you need to know. It also provides the best comparison when putting quotes alongside each other.
Make sure to get the dealer to give you the APR with the finance company that they use, and make sure it includes any additional fee’s or interest that will be charged. The total cost figure will be what you have to pay.