If you’re shopping for a new vehicle, then you might also be reviewing your finance options. Most vehicle purchases are high ticket items and that often means that finance is needed to complete the purchase.
So how do you find the right finance for your needs? Whether you’re buying a car, a boat or a camper van, it’s important to find a way of paying for it that works for you. Let’s take a look at three simple tips to get you started.
1. Review your existing finances
If you’re in the market for vehicle finance you may already have a car loan. If that’s the case, the most cost-effective way to buy your vehicle might be to add it to your existing finance. Why not give your provider a call and explore your options?
2. Take a look at your budget
Whether or not you consolidate your finance, buying your vehicle needs to work with your budget. That means getting a handle on the funds you have available to make repayments on a loan.
Take a close look at your finances and be aware of what you have to play with. Remember to include the cost of running and licensing your vehicle in your budget – it’s important to be able to enjoy your purchase as well as pay it off.
3. Find vehicle finance that suits your needs
When you’ve decided how much money you have available for your deposit and for ongoing repayments, it’s time to focus on getting finance that suits your needs.
You might want to pay your vehicle off quickly, or perhaps you’d prefer to manage your debt in the longer term and keep more cash available for other goals or needs. Weigh up your options and ensure that you’re comfortable with how much your vehicle will cost in total: that’s the cost of the vehicle as well as the total repayments you’ll make over the term of the loan.
Consider flexibility when you’re reviewing your options. Some loans allow you to pay your debt off with lump sums or increase your repayments if your budget improves. Other vehicle finance options may be more rigid in their structure but offer lower interest rates in return.
Once you’ve decided what you want from your finance, it’s time to pick up the phone or browse some websites. Create a shortlist of what’s on offer and make sure the finance you choose suits your needs.
Finding vehicle finance that works for can be a straightforward process. It starts with working out what you can afford and determining how your finance needs to work with your short and and long term goals.