Need a Car? Find the Right Finance Deal

Are you thinking about buying a car? If you are, there are a number of things that you need to ask yourself and the first question focuses on whether you are better off with a new car or a used car.

Should I be buying a new car?

Clearly this is a question that an individual has to make on their own and there are many factors that will impact on the decision. Budget is going to be the main thing because buying a new car is often very expensive and there is the fact that as soon you take the car on the road, the value of the car will fall by a lot of money.

The depreciation aspect of buying a new car is the thing that many people dislike about buying a new car. There are cases where 50% of the value of a new car can be wiped off it within the first year of owning it. For many motorists, this fact alone is all the justification they need to not buy a new car. However, there are plenty of other buyers who will only buy new cars. They cite the warranty, the fact that there is no need for a MOT and the comfort and confidence that comes from buying a new car as being big factors in the decision that they make.

Clearly, your viewpoint and opinion on these aspects will influence your decision but this is the first choice you have to make when thinking about buying a vehicle.

You can lower the rate of depreciation

If you want to buy a new car while minimising the impact of depreciation, there are a number of steps you can take. You should be looking to opt for new models and prestige brands. These will have a lower rate of depreciation than old models and brands that appeal to the mass market. There is also a lot to be said for going for a standard design and style of your car. Cars that come in bright or quirky colours will depreciate quickly because a lot of buyers don’t want to own this sort of car. There is also the fact that the interior design of a car can impact on the desire for it. A car that has a leopard skin lining is likely to have a lower level of demand when it comes to moving the car on, so you should look to avoid this style of design when buying a car.

One thing to look out for when buying a new car is the fact that the European market is over-supplies and basic economic principles indicate that this can help you to buy a car at a lower price. Being able to tap into this market will save you money, so don’t just rush to your nearest car dealer when looking for a new car, think about looking further afield and you may save yourself a lot of cash.

Think about the finance options when buying a car

You should also be looking at the finance options available to you when looking for a new car. The finance options available to you will likely impact on what you can afford to buy, so you should probably have this sort of agreement in place before you come close to buying a new car. If you have a bad credit score, you’ll likely find that banks will turn down your application. Also, if you have no credit score, the banks are also likely to turn you down. This is frustrating but given that your credit score is how banks judge your suitability to pay back a loan, not having a credit score sees you as a risk to them.

There are car finance providers but if you have been knocked back by a bank, you’ll likely find that these providers will charge a very high rate of APR. This means you will end up paying a lot of money for your finance, and this may make the cost of buying a car too expensive.

When it comes to buying a car, you will find that obtaining a guarantor loan is a very sensible solution. A guarantor loan comes with an affordable rate of APR and the lending company isn’t interested in your credit score. You will need to find a guarantor who is willing to vouch for you but if you have that in place, you’ll find that you can obtain the affordable finance you need to afford a vehicle.

Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.

Auto Novice

Auto Novices is a blog, that was set up in November 2011, which tries to help inform new & old automobile owners about various subjects from keeping their car in good working order right through to tips on buying a new & used motorbikes. GUEST POSTS: If you would like to produce a guest post for this blog then please contact us via the link in the navigation menu at the top of the page.