Top 5 Do’s and Don’ts of Car Finance March 5, 2020

Finding the right car finance deal can feel like solving a puzzle, but it needn’t be so complicated. From careful budgeting to finding no deposit car finance deals, check out our recommendations for finding the best option to suit you.

1. Do Budget Before You Commit

Car finance gives drivers the opportunity to get a better quality car than they would typically be able to afford if they simply purchased it upfront.

As with any expense, from mortgage repayments to buying the weekly foodshop, it is important to align your outlay with your financial situation, and to ensure that your expectations fall within your means.

Car finance should be available to anyone. A car with a lower ticket price will result in lower monthly payments, and you can tailor your loan to fit with your finances with no deposit car finance.

2. Don’t Feel Like You Need to Blow All Your Savings on a Deposit

No deposit car finance is an excellent option for anyone who wishes to leave a little buffer in their savings for a rainy day.

Not only does it allow you to get behind the wheel of your new car much faster by sidestepping the long saving-up period, it also means that your monthly payments could end up being lower than they would through a similar finance scheme, such as Hire Purchase.

3. Do Apply, Even if You Have Bad Credit

Your credit score should not hold you back from driving a safe and reliable car but, unfortunately, many lenders will refuse loans to customers struggling to improve a bad rating.

At Car Finance Giant, we only work with lenders who offer more flexibility with their car finance deals. Even if you have been refused in the past, our team is dedicated to finding the right deals for anyone in complicated or less-than-idea financial circumstances.

4. Don’t Forget to Consider All The Costs Involved with Keeping a Car

When considering your budget for your car finance payments, it can be easy to overlook the other, day to day expenses of running a car — especially if you are a new driver, or have not owned a car before.

Fuel, insurance, parking permits or tickets, road tax, unexpected repair costs, MOTs and servicing — even paying for the car wash (which you should be doing fortnightly) ) — will all contribute to your overall monthly spending.

There’s no use paying for a car to sit in your driveway. If you find that the costs of running a car will overstretch your budget, consider choosing a slightly cheaper car, as this will bring down your monthly payments on car finance, and leave some wiggle room for general maintenance.

5. Do Consider What You Need From Your Car

We all have a ‘dream car’ in mind, and car finance gives you the flexibility to find a car your really want to drive, while also making sure that it fits with your lifestyle.

Consider how much space you need — whether you will be driving the family around, or just doing a solo commute to work each day — as well as fuel efficiency, hybrid or electric options, technology, safety, and comfort.

No deposit car finance gives you the opportunity to find a car that complements your lifestyle, and makes you feel excited to get on the roads each day, so make the most of your great new deal by finding the perfect car for you.

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