Ask any home flipper and they will tell you one thing. It can be stressful! You will have to find contractors if you do not plan to do the work yourself. You will also have to make all the decisions as to what items will be used such as faucets, paint, and floor coverings. However, none of these decisions will be as stressful as choosing the right financing method if you do not already have a choice made.
Realistic Budget - Wouldn't it be great if a lender gave you enough money to buy the car you have always wanted and you never had to pay it back? In reality of course any money you borrow you will have to pay back plus interest. This is why it is so important you don't borrow more money than you can afford to pay back again within an agreed time period. Borrowing above your means can cause a lot of stress and could lead you in financial hot water. Set yourself a realistic budget when you are looking at purchasing a car on finance and make sure you don't get tempted by any 'amazing' loan offers.
Car finance is not only beneficial for the buyers. This is also a good thing for finance companies and even for the makers of the cars. Giving more people an opportunity to buy cars through car finance would logically mean having higher sales. For the finance companies, the more people go through them for buying cars, the greater income opportunity there is for tips on saving money them. They earn commissions by acting as the bridge between the car makers and the buyers.
Shop online. If you regularly order from various retailers you'll find yourself getting frequent emails encouraging you to spend more. Do a keyword search for specials and coupons, or free shipping before you place your catalogue order. Go to a major search engine and type the name of the company and the word coupons. You'll find sites that tell you the details of the coupon, the code or link to take advantage of this best catalogue finance option, and the expiration date.
Try to minimize the amount you borrow so you can pay less. Also, go for a shorter term, which will save you additional interest charges. The 72 and 84-month loans are not to your advantage. They only benefit the lender. Long-term loans can get you into trouble because your car is depreciating faster than you are paying it off. This is how people end up being upside down on their car loan and end up owing more than what the car is worth.
If you intend to buy privately then you will need the cash upfront in most cases. This means a personal loan can be a good choice as the money will be paid into a nominated account. Dealers can offer some very good car finance deals which may actually work out cheaper than taking out a personal loan and paying in cash. Make sure you consider all of the possible options before you sign up for any finance deal.
Reputable Lenders - you should always check the reputation of the lender before you take out any credit. Buying a car on finance should be no exception. Before you sign on the dotted line make sure the lender has a good reputation and can provide you with good customers support structure.