Most people who want to buy a car are going to look for a loan, but this is a process that can carry a lot of risk. Thankfully, this guide has your back! There are a few ways in which you can be much smarter about the process and save both time and money. Here are some of the things you need to consider.

Dealer finance?

Most car dealers will offer you finance options! Certainly, this route is more desired than using a credit card or using your home mortgage! It’s generally a safe route, especially compared to those alternatives just mentioned. Some of the finance options available from the dealers may even have also been designed by the car manufacturers, which can be very attracted. If you want to go down this road, then you need to speak to the sales representative in great detail about the options available to you. Remember: you can still haggle with the dealer even when you’re going with finance!

A smarter way to seek finance?

It’s actually greatly recommended that you seek finance before you start shopping around for a car. This makes it much more likely that you’ll get the car you’re looking for. It also means that you know precisely how much you can actually afford by the time you start shopping around! Going to the dealer for your finance often means that you’re already starting this process a little too late. Take the time to look into methods of guaranteed car finance before you.

0% APR

You may have heard the term “APR” before, seeing as it’s in pretty much every car advert!! So what does it mean? It stands for annual percentage rate, and it’s what determines the interest rate over the course of a year.All finance options will have some APR information. It’s worth remembering that this is dealers make a lot of their profit. If you can find a deal that features 0% APR, it’s definitely worth looking into: it means that you don’t pay any interest! However, a word of warning: if you miss payments on a 0% APR deal, you may be switched to a different finance scheme, one that actually features more APR that you may have agreed to in the first place!

The main risk

The main problem that you’re at risk of experiencing is that you end up paying a lot more for the car than its actually worth. This might be something you’d expect, right? To be honest, it can be very hard to get a finance deal that has you paying precisely what the car is worth. After all, there is interest to worry about. (This is why you should be aiming for 0% APR, if you can get it!) The main area you have to look out for is the upfront fees. You might be at quite a severe risk of paying an egregious amount in finance fees if you’re not careful! So make sure you know how much the car is worth, and keep the figure as close to that as you can.


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