Car finance is a lifesaver for many people that do not want to buy a car outright and would rather pay the sum off in monthly instalments. If you have not applied for a car loan before and want to find out more, here are some quick do’s and don’ts when it comes to choosing car finance…
- Don’t believe you can get access to car finance with a bad credit score?
If you have a bad credit history, this does not mean car finance is an unavailable option for you. There are companies available that will offer finance for the car you want if you can afford the required repayments. They understand how important a car might be for you, and therefore are able to provide car loans that match your circumstances, as long as you are able to prove your affordability. There are some terms and conditions you will need to follow and maintaining your monthly instalments on time will be necessary.
- Do make sure you have the right documents
To apply for a car loan or any type of finance, you will usually need your ID, proof of address, and in some cases proof of affordability. It is crucial you have this documentation available to apply for finance and without it, you might have a problem. Providing this information will help car loan companies to make an accurate lending decision for you.
- Don’t miscalculate what you can afford
You do not want to make miscalculations and confuse yourself, so before you sign anything, make sure you know exactly how much you will need to pay off each month. There is no harm in asking the lender if you have any questions, as they will usually be happy to help you understand anything you might be confused about.
- Do make sure you take time to study the agreement
It would be naïve to jump straight in and sign documents without reading everything properly. It can be tempting to just sign quickly so you can get your car and start driving it, but it is smarter to take your time and read through all the terms and conditions carefully. Well-established professional finance lenders will not be trying to catch you out, but it is still vital you know what you’re signing up for.
- Don’t forget to look after your car
Once you have your car, do not make the mistake of forgetting to get it serviced or keeping it in good condition. It is essential to keep up with car maintenance and avoid any marks and scratches. Wash your car regularly and keep it clean so you can see if there is any damage that needs repairing.
If your car is particularly expensive, you should make sure you park it in safe areas and do not leave it overnight in unknown areas. Those who look after their cars properly will save money in the long run. It’s worth installing extra security measures like alarms or steering wheel locks if you have an expensive car and you want to be extra careful. You will never regret taking good care of your car.
Having a car can be life-changing for those who have previously relied on public transport or if you have a new job that requires you to travel a bit further. The points above are just some of the key things to consider when deciding if car finance is ideal for you.
