Get a Better Deal on Car Finance for Your Family

Get a Better Deal on Car Finance for Your Family

The reliable family car is an essential part of busy family life. It seems like there's always somewhere you need to rush off to. Whether it's the mad rush to get everyone out the door in the morning, dropping the kids at school, getting to work or doing the grocery shopping, football and soccer practice, trips to the vet and more.

Your car is hugely important to keeping you and your family on schedule. But eventually, it might stop being quite so reliable, or your family might start to outgrow it. When that happens, buying a new car isn't just about getting the right car for your family, getting car finance that suits your needs can be just as important.

This guide will give you an introduction to the different factors you should consider when looking for car finance, also get professional financial advice before taking a car loan.

Loan type

Your first step should be to decide what kind of loan to get: a car loan or a personal loan. Both of these have their own advantages and disadvantages, so your choice will likely come down to a matter of preference or depend on your circumstances.

Car loans have the advantage of usually having lower interest rates. This is because, in most cases, the car that you buy is used as security for the loan. This makes the loan a lower risk for the lender because they have the right to repossess the car if you default on the loan. However, a disadvantage of getting a car loan is that you will have to pay off the loan in full if you sell the car and, in some cases, the sale price might be less than the amount remaining on the loan.

Personal loans have the advantage of being more flexible since you can use them for anything. For example, you could take out a personal loan to buy a car with enough left over to pay for a family holiday. However, because the loan is not secured by the asset that you're buying, a personal loan may have a higher interest rate, or you may be approved for a lower loan amount.

Loan features

After you have chosen the type of loan that you want, the next step will be to decide if you want any optional loan features. These will usually cost extra, so it's important to only choose the extra features that are likely to be useful for you, if you choose to take any at all.

Some optional loan features include:

Early payout
Gap insurance
Fixed or variable interest rates

Find the car

Once you know what you want to get from your car finance, you'll be ready to find a car that's right for you and your family. Going to dealerships and test driving cars is the fun part of buying a new car, but it's important not to get too caught up in the excitement. Make sure you have a checklist of features that you want your new car to have and make sure that anything you choose ticks all the right boxes.

Here are some things you should consider:

Safety – Safety is the most important feature of a family car. Always look for cars with a 5 Star ANCAP safety rating.
Reliability – A good way to find out if a car will be reliable is to the check the warranty length. Some manufacturers now offer five and even seven year warranties; this is a good sign that the manufacturer thinks the car will have a long lifespan.
Deals – It's always a good idea to be on the lookout for dealerships that offer deals for run-out sales. You should also shop around at different dealership and always negotiate with the salesperson.
Reviews – Reading car reviews before you go for a test drive is a great way to get a better idea about the car. That way, you'll be aware of any potential issues with it and they won't get overlooked in the excitement.

Talk to car finance experts

It's always a good idea to get expert car loan advice before taking out a car loan so that you're aware of all your options and the fine print of the loan. This can be especially important if you have bad credit; you'll be able to get advice on how to make your loan application as attractive as possible to lenders so that you can overcome bad credit.

It's also important to consider all your loan options and not just go with finance offered through the car dealership. While car dealers are experts on cars, they may not be experts on finance and the loan options they offer may not suits your needs.

Article provided by Digital360