Where to Find Cheap Car Finance
If you’re looking for cheap car finance, it may be worth taking a couple of minutes to have a think about what exactly it is that you are looking for. It is also worth noting that what constitutes cheap car finance for you may not be cheap to someone else and only you can decide if you are getting a suitable deal.
Loan options
You may:
-prefer a loan where you don’t have to pay any deposit;
-be prepared to pay a little extra for your loan due to having had some credit problems in the past;
-want a facility which could also offer you access to some dealer sites;
-have already found a car that you’d like to buy and need to set up a loan quickly.
All of these may have an effect on how cheap your cheap car finance really is, particularly in terms of interest on the loan itself.
Your options in finding a loan could be to:
-approach your bank;
-arrange a hire purchase deal with the dealership;
-use an online car finance specialist.a
Banks may take a fairly sedate approach to lending and you may have to wait while your application is processed, goes through the approval process and finally have funds made available to you.
You may also typically find that banks may expect you to fund some of the car purchase yourself.
Dealerships may offer hire purchase facilities but choice may be restricted to their own vehicles and the rates charged may not be particularly cost effective.
Car finance specialists
By contrast, the online car finance providers can typically provide a fast turn around to a car loan application.
If approved, in some circumstances you could typically expect to be notified of your guaranteed car finance facility within a couple of hours.
If you have already found a car this could mean that things could move along fairly quickly.
On the other hand, it could allow you to narrow down you search criteria to those cars, which could be covered by your guaranteed cheap car finance offer.
There are a couple of points that it may be sensible to bear in mind:
-typically the figure you are given following your application may represent the maximum that the lender has assessed you could comfortably afford to pay back on a monthly basis;
-the actual loan amount itself will be calculated once you have found the car you want and its market value has been assessed using its age and mileage;
-you are unlikely to be able to borrow in excess of this value.
What you may consider to be cheap car finance will be unique to you. Convenience and ease of application, even if you have credit issues, may also be important considerations.
Maxwell C Kirby is a freelance personal finance journalist who loves cars! Outside of his work life, he is well known commentator on all things related to cars, whether it is reviewing them or discussing car finance and car insurance