Car finance is modernising in 2019. We no longer have to go to the same old garage forecourts that we always used to choose a new car and utilise the car finance options that they offer you. We now have so many tools at our disposal that we can really shop around for the best deals rather than settle for whatever we can get. Buying a new car should be a fun experience but we also need to ensure that we are not getting ripped off. Don’t ever just take the salesman’s word on anything. Just like you would check out any car before you buy it, make sure you check your finance options. Read our guide to see where else you could secure the money you need to fund your new vehicle.
Online comparison sites as an alternative
Once you have found the right car the salesman will sit down with you and discuss finance options. How do you know, though, if the options they offer you are the cheapest ones available? Put simply, you don’t, unless you do your own research. When buying a new car, finance is a great option but you need to ensure that you are not paying over the odds. Always make use of an online comparison site to see if you could secure finance at a cheaper rate than the garage is offering you. Securing finance elsewhere might mean that the salesman at the garage ends up with less commission but it won’t affect your purchase of the car, they will sell to you no matter what. Plus sometimes, if you pay with cash (which you will have secured with your finance deal) you can even negotiate a discount.
Loans with a guarantor
If you have a less than perfect credit history then a loan with a guarantor might be a good option for you. Traditionally, those with a bad credit history have always paid more for their finance deals because of the risk involved in institutions lending to them. When you take out a loan with the help of a guarantor, however, you become less of a risk because somebody else is agreeing to help out should you fail to pay. This means that you can still access competitive rates if you have somebody willing to act as a guarantor for you. Why not have a read of our post looking at applying for personal loans if you have a bad credit history and see if there are any other ways to secure the best deals?
Peer to peer lending
Peer to peer lending is a relatively new concept that sees investors lending money to borrowers, usually at a cheaper interest rate than the financial institutions will offer. The loan is usually completed over a platform, which really acts as a marketplace bringing borrowers and lenders together. Borrowers must make an application, then they receive a grading based on their credit score and other factors such as their income to debt ratio. This grading determines the amount of interest that they will be charged. It makes sense, therefore to try and make sure that your credit score is in tip-top condition before you apply.