If you want to find the best car loan deal, you’ll need to think outside of the box a bit.
Getting information on the generalities of car loans is the relatively easy bit. There are plenty of glossy brochures with flashy cars on the front and models driving them. Then there are the newspaper and TV ads etc. The problem though is then deciding which is the one for you.
There are various techniques you can use for this ranging from picking one out of hat like a raffle, right up to doing a full in-depth analytical study of all the products and coming to a conclusion. If you’re either very lucky or have vast experience of the finance industry, the above methods may work well. If not, you may have some troubles sorting out the good offers from the not so good.
This is not because people in the finance companies are very smart and everyone else too dumb to understand – it’s because sorting out the true cost of finance and the best way forward can be a specialised/complex activity.
The trouble is, not all finance companies see life the same way. To decide whether or not to lend money, they need to understand whether the loan is likely to be repaid. If you have a credit history that’s flawed then some may decide not to lend at all. Others may be prepared to lend but they’ll see you as high risk and increase the cost of the loan (the interest). Different companies see bad credit risks in different ways so their prices will also differ.
This doesn’t only apply to poor credit history car loans. Some companies may see borrowers under 21 to be a major risk – others may extend this ‘worrying’ and its associated higher charges to people under 25. If you’re therefore, say 23, you’ll want to know that the first company exists!
There is a wide range of similar factors. To understand where to find the best car loan deal you’d also need to know how the lenders across the whole market see and evaluate things such as extended repayment periods, higher/lower percentage deposits, performance cars vs ordinary, goods vehicles vs passenger carrying, permanent vs casual employment income and so on.
In essence, to find the best car loan deal someone has to look at:
- The applicant’s background (income, job, credit history etc)
- The vehicle they’re planning to buy
- What the marketplace and its many various lenders are currently doing.
They then have to match these things against each other to see what lender and which product is going to offer the best deal.
OK, it isn’t perhaps rocket science but it’s not exactly easy either – and getting it wrong could cost you a lot of money in unnecessary interest or other charges.
So to find the best car loan deal, you’re either going to have to do a LOT of research and investigation or get someone to do it for you. The good news is that you don’t have to hire a personal consultant! There are specialist car finance websites on the Internet that can offer a wide variety of expertise, advice and guidance. They may be able to make recommendations that mean you not only get your finance but you get it at a price that makes sense.