Top Ten Tips on Car Finance

Along with buying a house another major investment that many people face today is purchasing a vehicle. Certainly with the cost of fuel on the increase buying a car that provides everything that one needs but is also economical is crucial today. In this article we offer the top ten tips on car finance so that you get the best deal possible when purchasing a new or used vehicle.

Tip 1 – Set a Budget – Once you have decided just how much you are willing to spend on your dream vehicle then you need to make sure that you stick with it. It is important when setting your budget you make a list of the features that you want your car to have. Do you want one with a large boot? Do you want one that provides ample room for all the family to be seated in it comfortably and safely? Are you after a diesel, petrol or a hybrid car?

Tip 2 – Do Some Research – The internet is the best place to look for information on the kinds of cars you are considering buying including what sort of price you can expect to pay for them. This information can also be found in magazines but by going online you can do it for free and it can all be done in the comfort of your own home. As you do carry out your research look for information relating to any manufacturers recalls on a vehicle. Plus check out when certain tasks need to be carried out such as the changing of the cam belt as this can prove to be a very expensive repair.

Tip 3 – Speak to Friends – If your friends or someone else you know has the car that you are considering buying then ask them for their opinion on it. Ask them not just how well it does in relation to fuel consumption but how reliable the car is also.

Tip 4 – Compare The Prices – Along with looking through local newspapers search online so that you can compare the prices of the cars you are interested in. If you are going to be purchasing a used car then avoid those which have high mileage on the clock as they tend to need a lot more time being spent on maintaining them. Plus if the vehicle is no longer in production then it may well prove difficult to get replacement parts for it. Another way of comparing prices if you have time is to spend time going around a few local car dealers close to where you live.

Tip 5 – Getting Your Car Finance Arranged – It is important that you spend time checking out several different sources for obtaining the finance you need to purchase your car. If you are purchasing a brand new vehicle it is not always ideal to go with the financing that the dealer can offer, sometimes through arranging your own you can actually haggle with them to get the price you actually pay for the vehicle brought down.

Although you may look at several different places to obtain your financing for the car from it is important that you don’t apply to them all as this will end up damaging your credit rating. A poor credit rating and you may well find that you cannot get the sum of money you want in order to purchase the car of your dreams.

Tip 6 – Take The Car for a Test Drive – Although you may think you don’t need to, it is sensible to take the car you are considering purchasing whether brand new or used for at least a 20 minute test drive. This way you can not only be sure that you will feel comfortable when driving it but will also be able to handle it as well. Plus it gives you a chance to see if there are any problems (especially with used cars) that may well end up costing you more to get repaired in the future.

However, before you take it for a test drive then get the bonnet up and check the engine when cold. It is also crucial that you test drive the car from cold as this will help you to clearly identify any future mechanical issues. Plus after testing it and you have returned to the starting point make sure that you test that all components within the car such as electric windows, heated seats, radio etc. are working.

Tip 7 – Buying a Car Online – If you intend to purchase a car through an online auction site then make sure that you ask the seller for as much information on the vehicle as you possibly. If they state they have a complete service history then ask them to provide you with proof of such. Most will be able to e-mail or fax the information that you want to you. Also carry out some research into the seller also. Look closely at the feedback they have received previously.

Tip 8 – Warranties – If you are purchasing a new or used vehicle from a dealer then see what warranties it comes with. It is crucial that you actually look at the documentation relating to the warranty so you know exactly what and what isn’t covered under it.

If you are buying a used car and the dealer offers just a basic warranty package for the vehicle, see if for paying a little more that they can upgrade it to something a little more substantial. Although you may have to pay an extra few dollars for such it may well save you money in the future.

Tip 9 – Getting Everything Documented – It is crucial when buying any car that you get everything put in writing in relation to the warranty agreement and any work that needs to be carried out prior to you getting the keys. Otherwise if you don’t you won’t have any recourse should you find that what was meant to be done hasn’t been.

Tip 10 – Getting The Keys – The majority of modern cars today will come with central locking that is operated by an electronic remote control or key. When you finally do take possession of your vehicle then make sure that you get both sets of keys for it. Remember to keep the second set safe and secure at home.