Things to look for when financing a new car

When looking at buying a new car the financing of the vehicle can seem like a complicated process that is difficult to understand.

This can lead to bad financial decisions and a long standing, extra bill that could have been avoided. Below we look at some top tips to look out for when financing a new car.

0% Finance is not always the way

Quite often the adverts in the media will inform of the 0% finance deals being offered at a local dealership. However, once you arrive at the dealership the offer may have ‘disappeared’ but the salesman is still there to sell the car to you. Be aware of this and always expect the deal to be worse than advertised.

Haggle

Many people presume that when getting finance on a vehicle then the price is non-negotiable. Always haggle the price down and remember there is no harm in trying as the car salesman will probably expect it.

Look at the bigger picture

No matter how good the deal may seem, remember to consider what it will mean for your future finances. What contributions will you be expected to make and how long will it be before your car is fully paid for?

Look at other financial packages

Many prospective car owners presume the best deal is with the dealership. Don’t panic and make a decision straight away. If you decide on a vehicle, go and do your research on other financial packages that are available. Independent financing of the vehicle could provide a better deal than being offered and also be a useful haggling tool.

Broaden your horizons

If getting a car on finance is the only option then it may be worth looking at a vehicle from a higher end of the market. With the longevity of a financial package the crucial thing is to have a car that will last as long as the payments take plus, still be an enjoyable car to drive after many years of ownership – such as a BMW.

BMW used cars don’t break the bank and with looking online you could find an excellent high-end vehicle with a good financial package to match. AA Cars, AA’s new online market place for purchasing vehicles, also provides a free 26 point check on the vehicle to give added confidence in purchasing a car online.