What Is a Quote for a New Car?

Today, it isn’t difficult to find a reasonable quote for car finance anymore. There are many different options out there, many very flexible, ensuring you can get new car loans that you can actually afford. In fact, companies that focus on car finance generally offer better rates than banks. Let’s take a look at some of the things to look for.

The Cost

How much a loan will cost you depends on three factors:

  • How much you want to borrow.
  • What the interest rate is.
  • How quick you want to pay it back.

If you have this information, you can also calculate how much you pay per month, although some lenders end with a slightly higher final payment.

The Time Span

The longer you have a loan, the more interest you will pay, the more expensive your loan will be. You can work exact figures out using loan calculators. However, you can reduce your cost by choosing a good lender. Furthermore, you can sometimes look at various loans on a single comparison site so that you can find the one with the lowest interest rate.

Interest Rates

Car loans have to have a fixed interest rates. Some of these are fixed for a single year, others for up to five years. This means that you can make some negotiations. Having the first year interest free, for instance, can help you significantly reduce how much you pay over the entire term of your loan.

Hidden Charges

Most loans come with some hidden charges to be aware of. For instance, you usually are contractually obliged to take out fully comprehensive car insurance. That way, if something does go wrong with the car, you won’t be able to scrap it, further protecting the finance company. This is an expense you have to calculate when you compare loan rates that are out there, particularly if you currently didn’t have car insurance, or if you did not have fully comprehensive insurance. That said, if you already had fully comp insurance and you now get a newer, better, and safer car, your monthly premium may actually drop.

Do make sure that you always compare the market when it comes to new car loans, and that you don’t simply accept the loan suggested to you by your dealer. Those loans, while often offering a reasonable deal, are always in the favor of the lender and the dealer, not you. Lots of information is available online, and you can even apply for loans online, so make sure you use that to your advantage.

We all dream of buying a new car, but you have to make sure that pursuing your dreams doesn’t get in the way of your regular life. There are loans available for just about everyone, including those with poor credit, but you must make sure that your loan suits your lifestyle and your budget. Don’t be blinded by the shiny metal of the car to the point that you don’t check your loan options anymore.