5 Simple Steps To Buy a Car You Actually Want

5 Simple Steps To Buy a Car You Actually Want

Posted on August 18, 2022

Buying a new car is a relatively straightforward process but there are still things you can do to make it even easier. That’s especially true when there’s an auto loan involved. We asked our Grimsby auto loans team to share a few tricks of the trade that can help you buy a car fast and easy!

Set your budget first

We always recommend getting your finances straight before even setting foot inside a dealership or starting your research.

Cars are one of those luxury items designed to make you want more or better and spend more on better. Having a budget fixed in your mind before you begin looking helps prevent you being seduced by top of the range, expensive cars.

Go auto loan shopping before car shopping

This builds on the first point around having your finances in place before visiting the showroom.

If you have set a budget, you can go loan shopping to deliver that. Whether that’s a set amount per month or a specific amount you want to borrow, having an idea of prevailing interest rates sets you up nicely for the fun stuff, checking out the cars.

Factor in other expenses

When you’re putting your budget together and looking at auto loan affordability, don’t forget to factor in running costs.

We see this a lot. Clients get wrapped up in the excitement, look at the headline figure for the loan, forgetting insurance, gas and all the running costs that come with a car.

Make sure your auto loan doesn’t stretch you too much and that you’re factoring in the average running costs for a vehicle of the type and size you’re looking at.

Research the dealership as well as the make and model

We’re all used to researching cars online and in person but do you do the same with the dealership? We recommend you do.

Read reviews, ask friends and family if they have had dealings with them, check social media for comments and get an idea of how the dealership treats their customers.

Having confidence in the dealership as well as the car can have a significant influence over how enjoyable the whole experience is.

Use a down payment to offset negative equity

Down payments aren’t mandatory for buying a new car but they do help. They reduce the amount you’re borrowing, they will get you a lower interest rate and they can offset that initial burst of depreciation that happens when you first buy a new car.

Lenders love down payments as you’re less likely to default when your own money is at stake too.

Many borrowers don’t mind negative equity as it’s part of the auto loan process but some do. A decent down payment can help minimize that period of being upside down and can be very reassuring if you’re not comfortable with negative equity.

There are 5 simple tips to help you buy a car fast. Have any ideas of your own to share?

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