Since the days that the first vehicle came to our market, the world has changed massively. Our country loves cars and simply can’t do without them. However, cars are also expensive and most people simply don’t have the cash lying around to buy one outright.
Buying a car isn’t difficult. What is harder is finding a loan that is affordable. Whether you’re looking at a new loan for a car that you would like, or whether you want to refinance your auto loan, it is important that you do a bit of research so that you find the best option out there.
Let’s take a look at the do’s and don’ts to help you find the best financing options.
What Not to Do
- Don’t start looking for a loan without preparing yourself. Know how much you can put down, know how much you are willing to pay monthly, know how long you want a loan to run for.
- Don’t agree to a loan before looking if you can get a better deal elsewhere. Always shop around and compare the market, looking at things such as APR, interest rate, early repayment charges, payment terms and more.
- Don’t sign on the dotted line unless you have looked at every angle and have considered all your options.
What to Do
- Always try to obtain a lower loan amount. You can do this in a variety of ways. For instance, you could get a good deposit together, or you could negotiate a lower price with your dealer. Remember that cars depreciate very rapidly and you can use this to your advantage when speaking to your dealer.
- Always do the math. Just because you are presented with a sheet of paper in front of you that explains what you are paying and why doesn’t mean it is right. Similarly, not every dealer will con you. However, why take a chance?
- Do always look at the bigger picture. Do you really have to get that car right now? Would you be much better off financially if you wait a few more months? Could you be just as happy with a smaller car, or the same one in a different color that just happens to be cheaper.
- Always negotiate. Dealers expect it, and it is almost like a sport to them. Don’t ask them what their lowest prices is and go for that, but make them offers and counter offers until you find a deal that is right for you.
Car buying should never be something impulsive. Most people aren’t impulsive in car buying, in fact. Rather, they spend ages looking at the different cars that are out there, check out the specifications and optional extras, miles to the gallon and more, take it for a test drive and so on. Yet they do all that research into their vehicle, and then they accept the first finance offer that comes their way. This is a silly mistake to make and it is vital that you spend as much time looking into your options.