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Easy Steps to get Car Financing

Easy Steps to get Car Financing

Not many people can afford to buy a vehicle out of their own pocket, and that means applying for some kind of finance is usually necessary. But what if you've never done this before, and maybe you have a less than perfect credit history? Exactly what do you need to finance a vehicle?

 

The good news is that with a little preparation, affordable car financing is available to nearly everyone who has the money to make repayments. These five tips will show you how to get vehicle finance with as little hassle and cost as possible.

 

1) Find Out Your Credit

Find Out Your Credit

 

Before you even apply, get a free credit report to check out your score. Having a low score doesn't necessarily mean you can't get financing, but it does usually mean you'll pay higher interest and won't have as many options. Knowing your score in advance will save you wasting time applying for a loan you have little or no chance of being approved for.

 

2) Get Quotes in Advance

 

But whatever your credit rating, it's useful to get a range of online car credit quotes before you visit a dealership. You'll know exactly how much you can afford, and you can also show the dealer the quotes as an encouragement for them to give you a better deal. However, make sure you get all your quotes in a short period just before you're planning to buy. Making too many loan applications spread over more than a week or two can have a damaging impact on your long-term credit score.

 

3) Repay as Quickly as Possible

Repay as Quickly as Possible

 

You can usually spread your vehicle repayments over two, five, seven, or even ten years. The longer you take over your repayments, the lower your monthly amounts will be. However, the amount of interest you'll pay will be greater overall, draining your finances for longer. Also, taking a long loan means your vehicle will be worth less the end, increasing the risk for a lender and making it harder to get an approval.

 

4) Make a Down Payment

 

If possible, making a down payment on your vehicle to reduce your loan amount makes it easier to be approved and lowers the interest rate you'll be charged. Around 20% is a good starting point, with the more the better. However, if you can't afford a down payment all's not lost. We can still approve loans for people with all kinds of circumstances.

 

5) Pay Extras with Cash

Pay Extras with Cash

 

Buying a car involves more than just the sticker price. You may also have to pay sales tax, registration fees, and other extras. These can usually be folded into your loan, but that will raise the amount and therefore increase the cost and difficulty of approval. Paying the extras in cash is better if you can afford to, but as with a down payment, it's not essential.

 

How to Get Vehicle Finance at Basant Motors

 

Our finance department makes it easy to get affordable credit to buy any of our used cars. Apply online using our secure form, and we'll get you behind the wheel with no stress and no drama.

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