Most people get excited about buying a car – and for good reason – but like many major purchases, there is a lot to think about when buying your new car: the make, the model, the fuel efficiency, even the colour are all important decisions that need to be made.
And of course, one of the most important of all these decisions is how you will pay for it.
Be Aware of the Repayments
The best place to start is to get a loan pre-approval from a car loan specialist before you go looking for your new car.
While it is natural to get excited about a new car, or a great pre-loved one, it can be crushing to decide on your dream car only to discover that the repayments end up being more than you can afford – the new car smell wears off pretty fast, but unfortunately the monthly grind of the repayments can go on for years!
It really pays to get a car loan specialist working with you to make sure the repayments line up with your budget. Getting the dollars right before you get too attached to the car can save a lot of heartache down the track.
Also, most car loan specialists know a thing or two about cars because they help hundreds of car buyers achieve their car ownership dreams each year.
Why Use a Specialist?
Having a specialist helping you does have its advantages.
- Helping lots of car buyers puts the specialist in a unique and unbiased position
- They often they have access to software that gives them a guide as to the right price to pay
- They can guide you about car values
- Can give you a run down on some of the pitfalls associated with buying a car before you find out for yourself the hard way
Information on the costly lessons learned by others can be invaluable, so ask as many questions as possible so you can make the right choice. A bad outcome with a car purchase can compromise your bigger goals which can be very frustrating.
Be Aware of Hidden Costs
In recent years many car dealers have developed the ability to offer finance as part of the car buying process. Although it can be convenient to take the dealer’s finance, and the interest rate can sometimes look attractive, there is more to consider.
Watch out for the upfront and ongoing fees as they can have a big impact on the overall cost of the loan and therefore your car.
If you’ve done your homework you will be much better placed to ask the right questions and make a better decision. It often pays to take your time and not rush into it!
Pre-Approval = Power
A pre-approval and the expert guidance you receive from a car loan specialist can also put you in a better negotiating position when it comes time to purchase your car.
Knowing what you can borrow comfortably is a strong starting position and can give you the strength to hold firm on your offer and might just be enough to get the best price from the dealer.
Finally, if dealing direct with the car yard is not your style there is an alternative.
Although it’s getting easier to do your research online rather than spending your Sunday’s trudging around car yards, it can still take up a lot of your valuable time if you’re not careful.
That’s why most car loan specialists have built up trusted partnerships with businesses that specialise in tracking down the best car for you. They listen to you and understand what you want, what you can afford and are happy to do the hard yards to ensure you get the best deal for your money. Most can also offer added protection through warrantees and other important considerations.
At the end of the day, buying a car is one of the biggest financial commitments you will have made in a while. It’s important to work with someone you can trust and who is going to do the best for you.