Don't just try and guess which product would be best for you. If you don't know what you are looking for you could end up taking out a loan that is unsuitable for your budget or requirements. Help is at hand from a range of sources around the internet. To get you started here are a few answers to some of the commonly asked questions about buying a car on finance.
1. Can I get car finance if I have other loans?
You can apply to buy a car on finance even if you have other outstanding credit products such as a personal loan. However you will need to be sure you can afford to take out another loan with your current commitments. Putting too much strain on your finances by ‘over borrowing' could make things very difficult for you and increase the risks of debt. Every lender makes their decision to lend based upon their own set criteria – quite often the motor dealer will be able to provide you with further information.If you are considering buying a new car on finance then you may not be sure where to start. The car finance market is full of many different lenders, products and deals.
2. Should I consider dealer finance?
You shouldn't overlook dealer finance when you are planning to buy a car on finance. Dealers can offer some very attractive finance products these days that can be customised to your needs. If you are thinking about financing through the showroom then ask the dealer what options they can offer – they should have experience of organising finance for customers.
3. Can I buy any type of car on finance?
Utilising dealer finance, often seen as the most convenient choice, will be done through the dealer you are buying the car from so naturally will apply to the cars they have for sale. Most specialist motor finance lenders only deal with approved dealerships so your choices will be limited to the cars available from car dealerships rather than buying the car privately.