So you've spotted that new motor you've been after for a while. But before rushing in to purchase the vehicle, it's worth giving yourself a little financial check-up.
Paying by cash would be the ideal situation, but for many of us this just isn't possible - particularly if you're looking to buy a brand new vehicle.
However, car loans can be useful in helping you afford the vehicle. If you're unable to pay by cash it can be worth looking into this option.
Before rushing into any deals on loans, it's worth doing a bit of research before you commit to any plans. Here are a few helpful hints for when you're searching for the right loans for your next car.
Set yourself a budget to begin with. With the credit crunch affecting fuel prices and such it could be worth working out how often you're likely to use the vehicle before committing to buying it.Check your credit rating during the research process. If you can hold off getting the vehicle while you make improvements to your credit rating (if you need to that is) you can put yourself at an advantage for when it comes to taking out loans.Shop around for different deals on loans, and make notes on different interest rates. Compare these and decide which would be best for you before rushing into a deal.Be sure to also research into the price of the vehicle you're looking at. Check both professional and customer reviews and try and determine an average price for the car you're after.Make a list of the value of all aspects of your purchase before you go to the dealership - such as average vehicle price and any pre-arranged financial plans before signing on the dotted line.Before you negotiate a price at the dealership you should have an idea of the price of the different parts of the deal - the price of the car, the financial plan details and the trade-in value of your current vehicle. This can make the negotiation process seem a little less daunting as you'll have an idea of value beforehand.Ask for a breakdown of all scenarios from the dealer, whether it be a 0% finance or a money-back deal. Ask to see details of both plans and study them carefully to see which would be best for you (and your wallet) before committing to a deal.If you're looking to take out car loans through the dealership, read the literature thoroughly, particularly with regards to the warranty. Ask about the length of the warranty and how car depreciation could affect this, and also if you're liable for any extra charges if you pay the loan off early.And most importantly of all, make sure you eat a good hearty breakfast before heading to the showroom - for you could be there for rather a while, and it's always best to be prepared.
