Once you've decided on the best way to raise the cash for a new car, follow these top tips to make sure you get the best deal:
Do shop around. Loans are like any other consumer goods, so don't be afraid to haggle for a better deal
Don't be taken in by zero or low percentage deals. Check the APR (annual percentage rate) as this is the real decider in the cost of borrowing. Look for a deal with a low APR
Do look at other ways to finance the car as these could be more convenient and cheaper
Don't assume the dealer is offering the best rate. Compare with high street banks and online lenders
Ask to see examples of repayment plans with and without extras such as payment protection and other insurances as these can seriously bump up the cost
Find out what all of the small print means and ask lots of questions. If you don't understand anything or the lender uses jargon, ask them to explain
Do think twice about companies offering easy finance to anyone. Most are reputable, but their interest rates can be high. You may be better off sorting your finances so you can get credit from mainstream lenders
Do use the internet. It's quick, easy and there are hundreds of deals available, many of them far cheaper than the high street banks'
Do contact your lender if you are having difficulty repaying the loan. All reputable lenders will happily rearrange terms to make life easier as it's in their interests that you continue to repay the loan.
