Car finance options explained
If you want to buy a car but you dont know what your finance options are, then you need to do some research into the subject. In the car business, financing a purchase basically means that you will be provided with a loan in order to buy a car that you pay back in installments.
Some people choose to take out a loan from their bank to finance their car purchase but many people like the convenience of getting a loan through a dealership so they can literally get a loan and drive their car away with them!
All you have to do is the following:
- Walk into a dealership
- Fill out an application for the loan
- Get approval
- Drive away in a new car
This can be done while banks and other financial institutions are closed at the weekend or in the night. Sometimes this means that a dealer will charge you more for the loan and the better your credit history , the better the deal. For those with a bad credit history, you should be prepared to pay high interest rates as the lender will be taking a risk on you.
If a salesperson asks you how you are going to finance your car, you could answer with one of the following:
- I want to lease a car
- I want to buy the car
You can get finance to buy all kinds of makes and models and if you dont know what you want to buy, then look out for adverts for events such as a used ford sale and see if you can find a car that appeals to you. If you choose to lease a car from a dealership, then you will often be limited on the amount of miles you can drive each year during the lease term. You can choose to lease the car for different periods of time with many people opting for three to five years.
You can often up the mileage you are allowed to do each year but this will likely push your monthly payments up. Once you have finished making all of your payments for the allotted amount of time, you can then often buy the car for a residual price or you can try and negotiate a cheaper price. Some people choose to return the car after the lease period and as long as the car is in good condition, then you will get your security deposit back.
If you choose to buy the car but you need help financing the purchase, then the dealership will also help you to find a loan that fits your credit score. You may be asked how quickly you wish to pay the loan off for the car and the majority of people choose somewhere in between 36 to 60 months. The longer the period of time to pay the payments off, the lower the payments will be.
If you know what type of car you want to get finance for, then you can try looking online for a finance company that offers finance on a particular make and model such as a used ford cmax. If you dont need finance but you do need to get in contact with a repair company, then you can try using a mobile repair company.
There are a few reasons why a mobile repair company is better than taking your car to a garage including:
- You dont have to find a way to get your broken down vehicle to the garage
- Mobile repair companies often offer cheap rates as they dont have expensive rent to pay
You can get a whole host of problems fixed by a mobile repair company such as:
- Broken or scuffed bumpers
- Damaged alloy wheels
- Damaged wing mirrors
- Exterior trim repairs
- Panel scratches
- Wheel arch scrapes
All you have to do is look on the internet for a mobile repair service in your local area. Some companies will also advertise their services on local radio stations, in newspapers and on the TV. If you want to find a reliable company, try asking around for a recommendation from someone you know. You can ask friends, family members, work colleagues or your neighbours to see which company they use.
From car finance through to car repairs, the auto industry is a highly competitive one and therefore there are many companies offering good prices for their services. You can make sure you get an affordable deal when you buy a used car on finance by ensuring that you buy a make and model that is well known for lasting for a long time. You should also try to ensure that you have a good credit history as this will help you to get credit in the future. If you have decided that you want to get a loan to pay for your car, then the most important thing to remember is that you will need to shop around and compare deals to find the best loan.
You should do the same thing if you want to make sure that the price you are being quoted from a mobile repair company is a reasonable price. How will you know if you are getting a good deal or not if you dont have anything to compare it to?
If you rely on your car to get around to get the kids to school and home again or to get to work and back, then you will need to ensure that it is in good condition. If you need some body repair work done, then you will need to make sure that you not only get quoted a reasonable price but that you also get a professional service.
If you own something such as a used ford fiesta and it has some repair work that needs to be done, you can check out the history of the car repair company by doing some online research.
To ensure that you use a professional company, try the following:
- Look online to see what previous customers have to say about the company
- Do an online search for news articles on the company
- Find a few chat forums and ask other people what they know about the company
That way, when you use a company you should know enough about them to be sure that they are worth using.
You can apply the same tactics when you want to find a loan to buy a car with, as you will also have to be sure that the company you want to use is trustworthy and reliable. You will have a few options to choose between when you are deciding on which loan to go with as you can vary the length of the loan, which will in turn vary the amount you have to pay back overall in installments. How much you pay as a down payment will also affect the cost of the loan as many companies will bring their interest rates down if you can commit to making a large lump sum payment upfront.
If you have no experience in organising a loan, then you should make an appointment to speak to a financial advisor. You can also make an appointment to speak with someone who works in your bank about getting a loan or you can call a representative at a loan company and speak to them about your concerns.