Things to consider when applying for car finance
10/06/2021 Volkswagen Tiguan 2wd SWB 2.0TDI 150 R-Line DSG Auto7 - Save 16.1% - £5,759 off list price - £30,066
10/06/2021 Skoda Octavia Estate 2.0TDi 150 SE L DSG Auto7 - Save 23.1% - £6,923 off list price - £23,052
10/06/2021 Toyota RAV4 4wd 2.5VVT-h 222 Dynamic CVT Auto - Save 10.7% - £4,091 off list price - £34,184
10/06/2021 Citroen Berlingo XL MPV 1.2 PureTech 130 Flair XTR EAT Auto8 - Save 26.4% - £7,708 off list price - £21,442
Paying for a vehicle, whether outright or with car finance, is usually the second most expensive thing you will pay for after a house.
That is why it is extremely important not to rush into a decision, and to take each step slowly with careful consideration.
When looking at car finance options there are a number of key things to do before making a decision. Don't leave any stone unturned and follow our tips on what to look out for when applying for car finance.
- Follow our tips on credit ratings. Your credit rating is a key factor in which finance deals are available.
- Make sure that you can afford the monthly payment comfortably over the entire term of the loan.
- Interest rates play a key part in getting a good finance deal, so make sure to compare them by looking at the APR (annual percentage rate). The APR includes all the charges you have to pay, and typically a higher deposit means a lower interest rate.
- Compare the total cost when it comes to borrowing, not forgetting all the charges over the course of the loan.
- Take into consideration that other charges may be incurred if you exceed the forecast mileage in personal contract purchase (PCP) or personal lease agreements.
- Consider what additional expenses may arise during the term of the loan. Will you be making any other big purchases, such as buying a house or going on holiday?
Get a GAP Insurance quote
For more tips on how to get the best car finance deal visit the Finance Tips section on the MotorPocket blog.