10 Car loan tips that will help you save money & time
There is a surplus of vehicle financing choices and you cannot browse every one of them thus, here are 10 car tips that will help you save money and time that have been gathered and listed from all the best choices.
1. Getting the right information
If you want to save money and time on getting a car you should first get as much information as you can on the subject of buying a car. With this information, you will be able to get a car much faster and be diligent about it and save money.
- Ask people for information
- Ask your parents about their car buying experience
- Ask your friends
- Ask your family
- Ask your work associates
- Get information through reading sources
- Do research online
- Read online reviews
- Browse your local newspaper
Overall research is paramount.
2. Choosing a financing option
Not all of us can buy a car with one simple check or have the right amount of money saved up to buy a car. But we also don’t want to make a loan, so then what do you do?
Truthfully, you have little choice but to apply for a loan. But be diligent about your choices, since a personal loan has a higher interest rate than a car loan. So, if you choose the loan specific to a car, you will have a lower interest rate than any of the other loan options.
But there is also another choice that involves you not paying the full price and it also has not increased credit or interest rate for your vehicle finances. This is done through buying the car on something that is known as a ‘lease’. A lease means that you will buy the car for a certain amount of money that is less than the total amount and pay the rest back at a later, agreed date. This amount is most often half of the total amount, but sometimes car salesmen will provide discounts to full price or leases.
If, however, you should not be able to pay your vehicle finance when the lease agreement time ends, then you don’t have to worry, because you can simply give the car back, rather than struggle with payment problems. It very similar to renting a car, which you can return anytime you don’t need it anymore.
3. Create a budget
This is most likely the best place to start when looking for a car. This option allows you to:
- Save up for a car
- Know your financial rate
- Pre-approved for vehicle finance
- Allow for a better way to choose a car
4. Choosing a new vehicle
The first and most important question under this heading would be which type of vehicle to choose. No, it is not about what company made the car or the different shapes the car comes in. But rather between a derivative or completely new vehicle. This choice defines the diligence of the vehicle’s use and your entire budget.
A second-hand car might seem better at first. It is, after all, cheaper. But cheaper doesn’t mean better, nor does more expensive. Instead, a new car has no kilometres on it. Meaning it still has a warranty, often from 3-5 years. The insurance is also usually cheaper for a new car. Not to mention that your interest rate, should you buy the car with a loan, will be significantly smaller than that of an already used car.
The next thing to take in mind when choosing a new car is looking if it is affordable within your budget. This will make the car significantly cheaper by default. If you have looked at different cars and found that it agrees with your budget’s limit, go for it.
Finally, we come to the last aesthetic choice, the vehicle’s design. Is this a vehicle you would want to drive, which company made it and what is its overall reputation? This might require a bit of research, but you already know exactly what you are researching, and this saves both money and time.
5. Use the comparison rate
Comparing things are a great way to make your final decision when it comes to your vehicle finance. Comparing loans and prices are diligent processes, that are not that hard to do and they can be quite quick provided you know exactly what you are looking for. What you are looking for is the type of loan you will use, the car you want, is it a new or old car etc. Everything that has thus far been discussed. This can save time on the entire process of getting financial acceptation and finding a good offer.
When comparing lenders, you need to understand that you will want to use their comparison rate as well as their interest rates. Why? Because this will include any additional establishments and ongoing fees.
6. Getting a lender, the right one
The buying of a vehicle can be a daunting task unless it is done with diligence. Meaning you know what you are looking for and have done the research to know a few things about cars.
As we’ve already discussed, comparing loans is already an excellent choice. And it will also allow you to find a good lender. You can get a car from about any bank, credit union, and any alternative credit provider.
Using indirect lenders is also not a bad choice since they will direct you to good, trustworthy lenders.
7. All the fees to keep in mind
You will have to remember that the following fees are paid with the car:
- registration fee
- stamp duty
- delivery fees
- car insurance
Work these fees into your budget if any of them seem necessary.
When thinking about it, the diligence of this task is horrifying. But do keep in mind, that negotiations are not just about honeyed words and being a good manipulator. Instead, it is about you making an offer that is more beneficial to you. Especially if an offer you have been given seems too high. And even if it seems fair, don’t be afraid to negotiate. Remember you are the one paying and using the car and you need to make sure it is your money’s worth.
This also leads to something different. The advertising and offers. When negotiating a lot of offers will probably be made, be both vigilant and diligent. Know what you want and get as close to it as possible without forcing everything. Do not merely jump at any and every offer that is represented. Consider all your offers.
This includes any of the extras that are made. Make sure your research is done well and that, when negotiating offers, you will receive a lot of advertising for extra stuff. Remember what you want.
9. Vehicle finance
We’ve already discussed how to chooser a good lender and making a budget, but there are two kinds of vehicle finances to understand. Secured and unsecured vehicle finance. Secure loans have the lowest interest rate of the two and are a personal loan through which the car can be repossessed by the lenders should you default on the loan. An unsecured loan is where the car cannot be repossessed, but the interest rate is much higher.
10. Proof & copies of documentation
Finally, make sure that you have proof of everything. And make copies.
If you diligently use these 10 car loan tips that will help you save money and time, you will finally be able to get your dream car.