In the market for a used car but don’t know how to get the best deal? Getting a car can be one of the biggest purchases you make so it’s important that it’s the right choice! The type of car you choose and how you fund it will depend on a few things. Credit score, budget, affordability, and employment status can all be contributing factors. Let’s take a look at how you can get the best deal when buying a used car.
Work out your budget
One of the biggest factors in the type of car you can get and for what price is how much you have to spend. Having a budget in mind before you go shopping is key. If you’re buying with cash, you may be limited to your max budget, but it can give you more power to negotiate. If you choose to spread the cost with car finance, you may have more options in terms of budget, depending on which type of car finance agreement you choose. It’s always recommended that you stay within your cash or finance budget, and you should never borrow or buy above your means.
Ask someone to support you
If you choose the car finance option, you could save money by getting finance with someone else. It can also be a good idea if you are struggling to get accepted for finance on a used car. A joint car finance application is when two people take out finance on the same vehicle and are responsible for meeting the repayment deadline. For the lender, it can increase trust that the loan will be paid back and can even lower your interest rate offered. This will save you money overall.
Do background checks
Whether you’re buying with cash or finance, you should always do your research first. You should always check a used car you are buying to make sure the vehicle is not stolen or unsafe. You can check that the MOT history and status match the detail you have been given, check if the vehicle has been recalled and that the details match those of the DVLA. If you’re buying from a dealership, you should also check the company reviews before you commit to anything. When you go view a vehicle, it is always recommended that you take a test drive and do your own vehicle checks.
Increase your credit score
For car finance you will usually have a credit check performed on your account. This is to check your history of making repayments and helps a lender to decide if they will accept you for finance or not. If you have a low credit score, you could consider increasing your score before you apply for finance. You can clear any existing debt you have, make payments on time and in full, keep your credit utilisation low and check your credit file for any mistakes. All of which can help to keep your score healthy. However, there are also options for people with low credit score and if you need finance in a hurry, car finance bad credit instant decision could be better suited to you.
It’s no surprise that one of the best ways to get the best deals is to shop around. You should shop around to see what offered local dealers have around you on similar cars. If you’re buying cash from private seller, you can also try to negotiate price by comparing other vehicles.
Part exchange your current vehicle
Having a car to part exchange can be really beneficial. If you have a car to part exchange, you should always get a vehicle price valuation first as you can use this to your advantage. If a dealer is offering lower, you can negotiate with the valuation you have received. In most case, dealers will do what they can to make the agreement work. If you’re applying for finance, you can also usually use your current vehicle as deposit for your next car.