Top Advice For Car Financing Experts When Getting Finance For A Vehicle
Buying a car is a significant expense, and most people will have to take out finance for a vehicle. Getting financing from the car dealership where you buy your new car is often the best route.
However, as with all financial transactions, it is always a good idea to ask a lot of questions to avoid making the wrong decisions about the financing arrangements.
Here are the top pieces of advice from vehicle financing experts to help you ensure that you are getting the best deal when applying for finance for a vehicle.
How To Secure The Best Interest Rate
Interest rates vary across different lending institutions but are also affected by your personal situation. So take cognisance of these factors that can affect the interest rate you will qualify for:
Down payment - the larger the deposit you can pay, the more likely you can negotiate a lower interest rate.
Your previous payment history - if you have a good credit history, you can often qualify for lower interest rates as you are seen as less of a risk.
Reducing the loan period - always opt for the shortest loan period that you can afford. Not only will you save on the total amount of interest payable, but you will also likely secure a lower interest rate overall.
Key Points To Keep In Mind When Seeking Finance For A Vehicle
Financing a vehicle is a long-term commitment, and you will be required to make regular payments (weekly, fortnightly or monthly) until the final amount is settled.
Look for the lowest interest rate option, but also ask about upfront fees that can impact the final amount due.
Do your homework on your personal budget to ensure you know how much you can comfortably afford to repay per repayment period.
Essential Things To Do After You Have Finance For A Vehicle
Keep your vehicle in top working condition and have regular vehicle services according to the manufacturer’s specifications. Don’t wait if you notice a problem with your car, get it attended to immediately.
Make your payments on time, and be sure to understand the repercussions if you miss a payment.
Contact HMC Kapiti today to find out about our wide range of options available to help you get finance for a vehicle. Please chat with our friendly and knowledgeable advisors about flexible finance and lease terms from no deposit, long-term, residual payments and bridging finance; we have you covered.
