Buying a car isn’t always straightforward. So many things have to be taken into consideration in order for you to get a fair price.
When buying a car, it’s important to always keep in mind which capabilities you need your car to have. With this in mind plus a solid budget and loan, you will have a better idea of what you can get for your money.
New drivers and dealer finance
New drivers will understandably be a little cautious when applying for driver finance for the first time; they will be wondering if they will be accepted or whether taking out such a loan will damage their credit score. Luckily, when you request a quote, you are not obliged to sign up for any finance scheme and this will not affect your credit score.
Car finance companies do generally offer car finance for new drivers, but most loans for new drivers are reserved for those who are over the age of 21.
New drivers have two main types of car finance to choose from; hire purchase and personal contract purchase. New drivers are most likely to get HP insurance, especially if they are buying a used car over three years old. PCP car loans are more often given to experienced drivers with a good credit history and who want to buy a new car.
Consider your budget and credit score.
There is no definitive minimum credit score needed to buy a car. This is because different finance providers use different third-party credit reference agencies to investigate your credit score. This credit score will be different according to providers and their specific scoring criteria.
There are also finance providers who specialise in providing car finance for people with poor credit scores. So, having a low credit score doesn’t mean that you cannot get car finance, and a great credit score doesn’t always guarantee you’ll get credit finance either.
Once you’ve found out your credit score and decided which kind of finance provider you need to side with, you then need to consider your budget as this will affect the size of the loan you need. When making your budget, do your research in the car market, see what you can get with your price range, and then use your research when negotiating prices at the car dealership.
Negotiate the purchase price
The prices of cars fluctuate a lot, especially if you’re planning to buy from the used car market. When haggling down a price, be sure to put forward any technical faults, damage to the bodywork (dents and chips), the condition of the tyres and any incomplete service history. These faults are all great starting points for price negotiation.
Financing a vehicle is often considered a substantial investment so is important to consider the specific functionalities you require from your car as well as the associated financial logistics. By keeping this in perspective alongside a well-defined budget and suitable financing, you will gain a clearer understanding of what is available and be driving off in your new automobile in no time!