One of the best feelings in the world is driving home a new car. However, before you can actually do so, you'll need to figure out how you'll finance your new vehicle.
Haggling is certainly an old strategy that surely works. Before you ever buy any vehicle, you should always try to haggle and negotiate on a lower price. With that said, the more expensive a vehicle is, the more room there is for negotiating. In the event that you can't get a lower price, then see if you can get at least a couple of extras with the vehicle.
2. Be aware of all your options
Finance has become more affordable, however, if you truly want to get a great deal, you need to look at all or most of the options available to you. Some of the options you can explore include loans from various banks, credit card companies, building societies etc. Make sure that you look at all of the terms and conditions for each option as well as their interest rates. If you choose to buy HP, then you'll need to pay the cost of the vehicle as well as interest in installments. When the contract is completed, you will fully own the vehicle. Another option is PCP where you will get to pay much lower monthly installments since you don't have to pay for the entire cost of the vehicle. When the contract is ended, you can either return the car, buy the vehicle or get another PCP.
3. Avoid overstretching
You should always try to negotiate on the final cost of the vehicle as oppose to how much you'll have to pay on a monthly basis. This is because when you negotiate for a lower monthly installment, this can easily hide a very high vehicle cost and bad deal. Make sure that you also consider the cost of maintaining the vehicle, gas, insurance, repairs and more. Avoid overstretching yourself too thin and make sure to inquire about any extra costs and fees.
4. Pay attention to the Maths
Next, make sure that you compare the cost of various loans and finance via APR. Take a look at Car.co.uk for finance advice. This will show you how much it will truly cost you since this figure will include charges and interest. You should aim to get low APRs since this will mean you're getting a better deal. Also, keep in mind that the longer the time frame for repayment, the lower your monthly installment can be. However, this will also increase the total amount you'll be paying. As a result, try to pay as much as you can on a monthly basis so that you can finish off the loan faster.
5. Timing is everything
One of the factors that affects the deal you get is the time of year that you try to purchase a vehicle. During the summer you'll find that convertibles are a lot more expensive, however vans or 4x4 vehicles would be much cheaper. A good time to buy a new car is definitely at the end of the year since you'll likely get a great deal since this is typically a low period for dealerships.