Whether you are purchasing your first car or one to suit your growing family, it is important to source the best possible financial deal. This can be an extremely fraught and difficult process, however, especially with dealers out to achieve the best possible price for their new and used vehicles.
With the economic climate increasingly strained, however, you have a responsibility to shop around and get the right car at the most affordable price. This may take time, effort and a prolonged process of negotiation with finance institutions, but as long as your effort is rewarded with fiscal savings then it is an extremely worthwhile process.
Finding the Perfect Car Financing Deal: Three Tips to Succeed
So with this in mind, what practical steps can you take towards securing tangible financial savings? Keep the following things in mind:
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Cheaper is Not Always Better: Should you find your finances strained, it is always tempting to source the cheapest car financing solution. This may be a false economy, however, especially if the vehicle in question in unable to meet your personal requirements. It is therefore important to focus on value rather than bottom line cost, as this will ensure that you find an affordable deal on a viable and practical vehicle. So develop an accurate budget and an exact understanding of your requirements before entering the market, as this enables you to appraise each deal and its individual merit.
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Think Beyond Price Comparison Sites: Although price comparison sites can be an invaluable tool in terms of finding affordable car financing deals, it is important to remember that there are a growing number of firms who choose not to add their details to these databases. This is so they can distinguish themselves from their competition, and encourage potential consumers to visit their site before deciding on a deal. So although you should consult comparison websites to peruse potential deals in bulk, it is also crucial to look beyond these and evaluate independent financial lenders.
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Negotiate as a Matter of Principle: Although it is a common practice, consumers are often loathe to negotiate when purchasing a single item. When this is a big ticket purchase like a car, however, then you should strive to negotiate the best deal possible as a matter of principle. If you fail to appreciate this, then finance managers are likely to adopt a hardened approach during discussions and resist the temptation to offer you a discounted rate. As a consumer it is important to challenge finance firms and make them compete for your custom, as this gives you a critical advantage within the market place.
The Bottom Line for Consumers
Although there is no way of guaranteeing the affordable purchase of your chosen vehicle, as a consumer you can at least take precautions to protect your best financial interests. Without adopting this considered and structured approach, you run the risk of losing significant sums of money over a prolonged period of time.
If you’re buying a used car, check out the Consumer Reports Used Car Buying Guide (2012)
