Most people come to a certain point when they have to borrow money to buy something expensive. This could be a house, home improvements, school fees or a car. Times are economically difficult at the moment so getting a loan isn’t always as easy as it once was. If you have a reasonable credit history though, there are car loans available. Here are some ways that you can make sure you get the best car loan possible.
Know your credit history
First of all make sure you know your credit score, this will put you in a much better negotiating position. Money lenders are far more likely to lend you money if you have shown that you can be trusted to repay the money you have borrowed. That isn’t to say that you can’t be trusted if you have a less than perfect credit history, many people have lost their jobs over the last few years and have found themselves unable to repay their credit. Unfortunately the banks will still penalise those people with higher interest rates and less car loan choice. Check the APR on any car finance you are considering and make sure that you work out the difference between the flat rate and the APR as the difference can be considerable. Even if you have a low credit score, there are many ways that you can improve it over time so don’t get too disheartened. There will also still be loans available to you but they will have much higher interest rates. To avoid a footprint on your credit history if you think you will be turned down, try to get car loan quotes over the phone.
Get a higher acceptance rate
Another way of getting a good car loan deal is to apply for PPI, or payment protection insurance. This doesn’t mean that you have to take it out, in fact it isn’t recommended at all. But, just for applying for a loan with PPI means that you are more than likely going to be accepted. When you have your quote and you have been offered your loan then you can say you have just changed your mind and cancel the payment protection insurance and get the car loan company to give you a new quote. You will normally have fourteen days to do this. Doing it this way will usually mean that you get the lower interest rate too.
The best way to make sure you get a good deal on your car loan is to shop around. If you get a good quote, make sure you read the small print to ensure it is as good as it appears.
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