Help Guide: Motoring
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A Consumer’s guide to Car Finance

If you’re looking into Car Finance as an alternative to buying outright or leasing your vehicle then it pays to have as much information as possible in an area that can quickly become incredibly confusing. To this end this guide talks you through the ins and outs of Car Finance and what you should be considering when looking at this option for buying your car.

Making a staving on your Car Finance Deal
Thinking about length of repayments
Car Finance deals generally tend to offer various options in terms of the repayment time. These will invariably be between 3 and 5 and a half years long. Whilst you need to consider your affordability in terms of outgoings each month you should also consider the total amount to be repaid. Obviously the amount repaid for a 3 year loan will be significantly lower than for a five and a half year loan.

Checking out the fine print
The fine print for car finance deals will differ from provider to provider. From 0% to low deposit deals with each having its own APR rate. It can’t be overstated as to how important reading the small print is; check out the details for everything from missed payments to repaying early.

Differences between garages and car manufacturers
Invariably there are huge differences between the various garages and car manufacturer deals; not only is there the terms of the car finance deal to consider, but additionally there are the innumerable special offers that may be on at any one point in time.
A money saving deal that some providers offer may be where the car is offered with free insurance and petrol for a set number of years (with the petrol being a set amount deducted from the car price). Just be sure to weigh up the benefits of such deals against the terms of the Car Finance deal.

Other considerations when opting for Car Finance
Part exchanging your car
As an alternative to a car deposit it may be possible to part exchange your current car, which will then act as either the entire deposit, or a part of the deposit.
Prior to considering this option however you may want to look into selling your car privately as very often the garage may offer you less for your car as a part exchange than you would otherwise receive from selling the car yourself.

Considering a bank loan
Rather than choosing car finance it may be more beneficial to opt for a Bank loan. At a time where interest rates are lower than ever competition is particularly fierce amongst the high-street banks, and so gathering at least a couple of quotes to compare against your potential car finance deal is a must.