When you decide to buy a car it can be fun to think about the type of car you would like and all the ways you will be able to use your new car to save time and money. However, you first have to raise the money to purchase a car and the process of securing finance can often seem daunting.
It’s becoming much easier for students or those on a low income to own a car and to secure finance for the purchase of a new or used vehicle. Many people still choose to buy a very old and worn car from the classifieds that they can afford to pay cash for. This is fine, but you should also consider how much that car may end up costing you in repairs and how reliable it will be if you need to use it for getting to class or work on time.
If you want to opt for a more expensive, newer car or simply don’t have the option of paying cash for an older car, take some time to review your financing options. Student and low income car loans are available from car dealerships, online lenders such as the professional car loan company and even from high street banks.
Most major lenders will operate a scheme that fits with your circumstances, but there’s also specialist providers who specifically target their services toward students, low income groups and those with no or poor credit.
Additionally, you may find by shopping around that you can secure a car loan with a low interest rate or a longer payback period. Other incentives are commonly available, such as interest-free credit, free insurance cover or a deferred payment option.
When you have looked at your own budget and established how much you can afford to pay each month, the next step is to establish how much a lender is willing to offer you. You then need to decide whether you want to buy a brand new car or would prefer to choose a car that’s a little older, but still in good condition.
When you find a car that you would like to purchase make sure you get the car checked by an independent mechanic and have the car’s history checked. This will lessen the risk of entering into a credit agreement to pay for a car that doesn’t represent good value or that may cost you additional money.
It can be easy to get carried away when choosing your new car and end up picking a car that you want rather than a car that meets your needs. If you choose a car with a large engine and low miles per gallon of fuel, you must be able and prepared to spend more filling the tank than you would if you bought a fuel-efficient car.
Similarly, if you choose a sports car your insurance premium will be much higher than if you bought a car in a lower insurance group. These additional costs should be factored into the affordability of the car and it would be wise to get insurance quotes before purchasing the car.
Lastly, don’t assume that because you are buying on credit you won’t be able to negotiate. Car sales is a competitive industry, so shop around and ask for discounts or for extras to be included if you sign the paperwork that day. For more information click here