5 Helpful Tips for Financing a New Car

If you want to get a new car, it is important that you look into your financing options, as well as some tips that can help you out. The best way to get the car you want without a lot of frustration, later on, is to learn as much as you can about your financial choices. A new car is a big expense, so you don’t want to rush into a final decision.

Take a Look at Your Credit Score

There are many reasons why you should take a close look at your credit report, but it’s especially important if you are planning on buying a new car. By doing this, you will be able to identify any potential errors on your report, which could help bring your score up. Since your credit score will be a crucial factor in financing a new car, you will need to take the time to do this. Even those with a low credit rating still have guaranteed car finance options.

Use Hire Purchase

Hire purchase can provide you with an effective way to finance your new car, but it’s not an ideal option for everyone. You will be required to put down a deposit of ten percent to start, and you’ll need to make monthly payments with a fixed interest rate for the agreed upon period of time. This is one of the fastest ways to get the money you need, and you can put down a fairly low deposit. The competitive fixed interest rates will ensure that you don’t pay more than you really need to. However, they will probably be a balloon payment at the end of the term.

Get Multiple Quotes

It’s always important to get multiple quotes from different lenders so that you will be able to get the loan you need at the lowest overall amount. Not all lenders charge the same interest rates, so you will need to make a point of doing this research. These days, getting quotes is as easy as going online and filling out a brief form. This research can go a long way towards saving you hundreds of pounds on your loan.

Per At Least 20 Percent Down

The more money you put down on your car, the lower your interest rate is going to be. It is recommended that you put at least 20% down so that you don’t end up with a ridiculous rate. You might have to save up for a while, but it will be well worth it in the end.

Consider Leasing

Leasing is another financing option that you will want to look into before making a decision. In this case, you would pay a dealer a certain amount each month to use the vehicle and all maintenance costs are covered by the dealer. However, there will likely be a fixed mileage limit in place, and if you exceed this, it will be costly.

Anyone who is planning to get a car will first need to look into their financing options and get the information necessary to make an informed decision. There are a lot of different ways you can go when getting a new car, and it’s crucial that you learn as much as possible about them.


Will Hopstetter
Will is an automotive market enthusiast living in the United Kingdom. He holds a diverse background in automotive and enjoys utilizing that to produce insights into the inner workings of the industry.