It would be great to walk into a car dealership, choose your car and then pay for it without the need for finance. Regrettably, most people aren’t able to do that when they are buying a new car. What also tends to make matters worse is that the car you are part exchanging never seems to be worth as much as you anticipated. The dealer comes up with the usual stories of it’s the wrong color, or not what people are buying at the moment, despite only being told a couple of years ago that your car retains its value well.

It all means you need to look around for finance; and it’s important you do look around, because finance deals differ substantially.

There are three main options; get the finance from your bank, get the finance using independent finance brokers, or get the finance through the dealership. All three have positive and negative points, but mainly it comes down to your personal financial position.

If you have a good relationship with your bank, keep your account in order and have repaid previous loans in a timely fashion, your bank is a good place to start. In most instances they will offer you the lowest interest rates with terms to suit your budget. You also know who you are dealing with and they know you. It’s also likely that the finance can be arranged very quickly; often the same day, so if you’ve found that perfect car, you may be able get a deposit put down on it to hold it.

However, before you make the decision to get finance from your bank, it’s always worth taking time to check elsewhere. Certainly go to your bank and get a quote and provisional acceptance, but then check out some other options; you may be pleasantly surprised.

Call up a couple of finance brokers. Tell them what you need to borrow and what terms they have to beat to get your business. Remember, you may need to borrow money, but you are the one giving them business, so make them work for it. Finance brokers have a list of companies they deal with so you may be able to get a better deal than the one from your bank. Sometimes they offer an initial interest-free period or have more flexible repayment terms. Get a few quotes and compare them with the one from your bank; but do make sure you read any small print to ensure there are no hidden fees and charges.

Finally, don’t forget to check out what fiance offers are available from the dealership. Dealers get a commission, if they put you in touch with their preferred finance partner and you get approved. Also, car dealers are not having the easiest time moving cars currently, so you may find you get an interest-free loan or at least a reduced interest rate.

Once you have undertaken your research and found the finance deal that best suits you, then you are ready to go and buy your new car.

Lawrence Reaves writes about Used Ford Engines and Used Engines for Woodfins.com

Lawrence Reaves writes about Used Ford Engines and Used Engines for http://www.Woodfins.com

Author Bio: Lawrence Reaves writes about Used Ford Engines and Used Engines for Woodfins.com

Category: Automotive
Keywords: cars, car parts, auto parts, used auto parts, DIY car maintenance, general car care