Buying a new car is one of the largest purchases most people make in their lives. Therefore, it is worth taking care and making sure the deal you get is the best possible.
If you need to obtain credit to fund the purchase of the car, you should be aware that the financing offered by the dealer is often not the best deal you can get. If you shop around for loans you may get financing at a much better rate. You should compare the annal percentage rate (APR) as well as the length of the loan and the amount of monthly repayments. Always look at the total amount repayable and compare this to the price of the car to see the cost of the finance.
Sometimes, dealers will offer you a very good financing rate on specific models that qualify. It may not be possible to negotiate on the price of these models and you should check to see if this is cheaper than buying another model that can be negotiated.
Make sure you have a copy of the contract and before you leave the lot, evaluate whether the repayment terms in it are affordable. If the dealer asks you to buy credit insurance, you should add this into the price and see if the car is still attractive. You should also check your existing insurance policies as you may be covered already under another policy.
If you are considering a trade in, bring it up only after you have already negotiated the best possible price for the car you want. You should also research the value of your old car so that you know what it is worth. This information will help you see what the dealer is effectively offering you for your old car and if it is a fair price.
If you are considering a service contract you should be clear on what it offers. They have many exemptions and you will already have some cover from the manufacturer’s warranty which is included in the cost of the car. You should certainly ask the following questions:
Joseph Kenny is the webmaster of the loan information sites http://www.selectloans.co.uk/ and also http://www.ukpersonalloanstore.co.uk . Select Loans have information and links to certain suppliers in the car loans section of the site.