You’re excited. The big day is here. You’re going to pick up your brand new car from the dealership and drive it off into the sunset. Or, at least until your next oil change! But before you do that, there are a few things to consider when it comes to financing. It’s an exciting time, so don’t make a bad decision with your financing.
Here are five tips for getting a great deal on new car financing
Don’t finance for longer than you need to
Loans of more than 5 years aren’t uncommon when it comes to car financing, but if it’s possible, don’t choose one that’s so long. If you get a shorter loan, you’ll be able to pay it off faster – you’ll save money on interest and you’ll benefit from having a car that’s newer. If you need a loan of five years or more, get pre-approved for a shorter-term before going to the dealer.
Compare loan options from all lenders
The finance manager at your dealership likely has access to many lenders with different interest rates. Make sure that you’re getting the best deal by comparing interest rates from every lender.
Alternatively, you can consider your online finance options, for example through Driva car finance, to see all of your eligible loan options and rates in one place.
Do your research
Never ever buy a car without knowing how much you can afford to pay for it. The finance manager should have worked out an estimate of how much you’ll have to pay before you arrived at the dealership, but don’t be afraid to ask them to explain their calculations. If you have a budget in mind, stick to it!
Pay off your loan as fast as possible
The best way to save money with car finance is by paying it off as quickly as possible. Log all of your loans and calculate the repayments on each – even if you’re only planning to pay small amounts every month, paying them off faster is still cheaper!
Negotiate!
Before you even think about financing, make sure that you’re getting a good deal on your car itself. Do your research and compare prices at other dealerships to see what kind of discounts are available. That way, you’ll know exactly how much money to put towards your loan.
When you choose your finance option, negotiate the best interest rates and fees that you can. The dealer will have access to many lenders, so don’t assume that they have the best rates! Be persistent without being pushy. Even if they turn down your offer once, make sure that you get another chance to lower the price even further before you agree to anything.
After you consider all of these points, you’re ready to drive off into the sunset with your new car! Congratulations!
