SimplyFinance - Car Loan

Drive a Hard Bargain: Why you should Haggle for your New Car

2009-11-04T00:00:00Z

It appears that many motorists are shy about haggling over the price of a new car, according to research carried out by Sainsbury's Finance. Out of the 1.14 million people planning to buy a car between September 2009 and February 2010, around 10% said that they would not expect to haggle at all.

These non-hagglers might change their mind about this however if they realised they could get a discount of up to 50 per cent off the shop price for the car. What Car? Actually recommends that the average discount you should expect on a new car is around £1893.

Steven Baillie, Head of Sainsbury's Loans said: "The car industry is still going through a difficult period, with sales of new cars in September for example down around 20% on previous years(5) despite some help from the Government's car scrappage scheme.

"From the buyer's point of view this means that now is a good time to negotiate a significant discount on the price of a new vehicle. Our research suggests that with stereotypical British reserve, many of us don't haggle hard despite the big savings that can be made, so we'd urge car buyers to give it a go."

The government recently announced plans to add an additional £100 million of funding to the scrappage scheme, whereby car dealers that are signed up to the scheme would give car buyers £2,000 off the cost of a new car if they agree for their old car to be scrapped. This means that the scheme will now cover up to 400,000 vehicles in the UK. To check if your car is eligible for the scrappage scheme, read the government's scrappage scheme guide here.

When haggling over a new car purchase, it helps to do your research in advance. What Car? has published a guide showing the average discount you should expect on a particular make of car. Don't fall victim to crafty safes techniques; if you have a set budget and a preference on the make and model of car, a hefty discount on a more expensive car is not a good deal.

Also, if you need a car loan in order to purchase the vehicle, make sure you shop around for the best deal. According to Sainsbury's Finance, around 26% of new cards purchased in the next 6 months will be financed by car loans, and asking for quotes from a number of different providers will ensure that you find a competitive rate. The haggling doesn't necessary have to end at the dealer's yard. If you see a car loan rate that you like, ask your bank if they are willing to match it. You may find that they will do so, in order to win your business.

Buying a Car with a Personal Loan

2007-07-24T23:00:00Z

Do you dream of owning a new car? Rather than having to come up with all the money at once, you can take out a personal loan to pay for the car, thereby allowing yourself the opportunity to pay the amount in manageable payments instead of in one lump sum. Most frequently, an unsecured loan is the type you will take out to purchase a car, but a secured personal loan may also be an option, depending on the amount that you need to borrow.

Along with your loan, you lender can provide you with a number of add-ons to help make your car buying experience easier. They can offer you the option of picking your monthly payment date, payment protection insurance, and payment holidays. All of these options give you the opportunity to tailor your loan to meet your specific needs.

Many different lenders offer secured personal loans for the purpose of buying a car. Banks, building societies, and specialised lending companies are some of the sources you can go to for this type of loan. If you want to do some research before deciding on a personal secured loan, the internet is a great tool. There are some websites that are equipped with online secured loan quotation systems. Some sites even allow you to compare several quotes side by side so that you can see your options and to choose the loan that is right for you.

As stated above, a secured loan is a loan that requires you to provide something as collateral to your lender. You could use your house, other real estate, or a savings account as collateral. Any of these things will work as long as its value is 25 per cent (or more) greater than the value of the car you are purchasing. When taking out a secured loan to purchase a car, your APR will be relatively low because your lender has your property as security. The approval process may take a while because with a secured loan there is the extra step of the lender having to determine the value of the property you put up as collateral.

Taking out a secured personal loan for the purpose of buying a car may be a better deal for you than using dealer financing to purchase your car. If you take a loan out through a bank or lending firm, you will not be tied to one dealership for the term of the loan. Also, if you have the loan finalised before you go to the dealership you will be less inclined to spend more money that you should. Dealers may try to talk you up to a better model or try to talk you into some extras, but if you only have the loan money, you won?t be able to succumb to sales pressure. Also, having the money before you go will put you in a much stronger bargaining position.

If you'd like help finding a personal loan for the purpose of buying a car, take a minute to fill out our short personal loan form, and a SimplyFinance representative will contact you shortly to introduce you to a personal loan lender who will search to find the best personal loan deal to help you get the car you want.

Your Auto Loan Guide

2008-03-15T00:00:00Z

There are many steps involved in finding and then financing your new car. The entire process may seem daunting, but when done correctly, is actually fairly straightforward. Our auto loan guide can guide you through this difficult process and help you become the proud owner of a new car!

A car is one of the bigger purchases you will make in your life. Because of this fact, it is important you do your homework. Look no further than this auto loan guide. The first step should always be deciding what you can realistically afford. While it may be enjoyable to peruse the newest models and luxury vehicles, if these cars are entirely out of your financial capabilities, you are simply wasting time. It is always a good idea to formulate a basic budget idea. Keep track of the maximum amount you would be able to pay as well as your ideal price. All of the cars you consider should fall somewhere in between these two values. Try to find cars as close to your ideal price as possible.

Almost more important than keeping your ideal price in mind is to keep the amount that you'll be able to afford "out the door." On top of the price you're able to haggle down to, you will need to add around ten percent to that amount to cover tax, car insurance, license, and other fees.

With this auto loan guide we not only want to give you the basic tools for researching your new car, but the tools to help you pay for that car. A critical primary step is credit research. A common mistake people make is to postpone thinking about how they will finance their car until the last and critical moment. Ideally, you should check your credit months before you plan to finance a new car. If there is false or outdated information that is possibly lowering your credit score, it should be altered or removed, but this can take up to 3 months to complete. Get your credit report from one of these three national credit agencies: Equifax, Experian, and Callcredit.

The next is to help you determine which car is a good fit for you. Should you buy a new or used car? Should you buy or simply hire a car when you need one? There are pros and cons to each and it all depends on the individual. A new car has all the perks and prestige, but it may be more than you?re able to afford. New and used car dealerships will typically charge higher interest rates for bad credit, or they may not even issue you a loan if your credit is under a certain level. Also, dealers tend to charger higher fees for things like keeping the car on the lot. Be sure to ask about all related fees before you make any decisions at a dealer.

When deciding on a new or a used car, there are a a few thing to take into consideration. For one, a new car may last you longer than a used car, depending on the year of the used car. If you are looking for a long term, trustworthy vehicle, a reliable new car or used car with limited miles is a necessity. New cars also come with a comprehensive manufacturer?s warranty which lasts at least three years and covers most damages and technical problems which occur in that time. Used cars may also come with a good warranty if bought from a seller with a pre-existing warranty or if you buy used from a car dealership. Always research your options.

The decision between either leasing or buying your car is also an important step in the car planning process. One option is definitely not better than another and both require careful consideration. The best option for you depends entirely on the specifics of your situation. When buying a car, you are paying for the entire cost of the vehicle, no matter how many years you have it or how many miles you ultimately drive it.With the basic information in this auto loan guide, you should be able to make a fairly good start in buying your new or used car. However, you may still find that you need a little help with financing.

We can help you find a loan you will be happy with. Once you have found the perfect car, don?t hesitate to apply through this auto loan guide for a premium loan. Our loan specialists will promptly contact you to discuss your options. You are under absolutely no obligation to accept any of the offers you're give. We simply want to provide you with the most useful information you may need to finance your car. We hope this auto loan guide has helpfully outlined the basic information behind buying/leasing your new car and we hope to hear from you soon.