| The fact you're reading this article probably means | | | | and scrupulous lender will want to see that the value |
| you want help on how to finance a used car | | | | of the asset (car) bears some relationship to the |
| purchase. | | | | reality of what you are trying to borrow and |
| It would be nice to say that if you contact the "Free | | | | proposing to pay for it. Many lenders will have a |
| Money On Demand" company, they'll immediately | | | | comprehensive knowledge of vehicle values and while |
| deliver a truckload of cash to your front door and | | | | you think that 20-year-old rust-bucket is in fact a |
| charge you nothing for it. If only! | | | | future antique and a snip at the price - they may not |
| In reality you're probably going to have to think a | | | | share your optimism. |
| little about things and avoid rushing in - at least if | | | | - Thinking about the options for financing. If you |
| you're looking for the best deals possible. | | | | have verifiable regular income and assuming you do |
| - Try to clarify your own financial position.Before you | | | | not have a catastrophic credit history, you will |
| get any loan from anyone, you will need to be able | | | | probably find that there are many lenders around |
| to explain your overall financial position. They'll most | | | | such as banks, building societies, finance companies |
| likely need to know how much you're earning, the | | | | etc. It may pay to avoid the temptation to take the |
| nature of that income and what your monthly | | | | first one offered just because it means you'll get the |
| outgoings are. | | | | car faster. You may get a much better lower-cost |
| They need this to try and understand how much you | | | | loan by shopping around or getting someone to shop |
| can realistically afford to pay back each month and | | | | around for you. |
| from this they'll know the maximum amount they | | | | - Recognising the complexities of car finance deals. If |
| could lend. You won't help your case if to start with | | | | you're not completely comfortable with the |
| potential lenders see that you're unclear about things | | | | complexities of interest rates, repayment periods and |
| as basic as how much you earn each month or how | | | | service charges, or if you have a history of credit |
| much you're already paying out on things such as | | | | problems, then you may want to think about using a |
| mortgage or rent. It won't create a picture that | | | | specialist car finance service. |
| you're in control of your finances! | | | | That's because it's not always easy to tell at a glance |
| - Deposits = confidence & lower cost.Many | | | | what the best offer is for your particular situation. |
| lenders like to see that you are contributing some | | | | There are specialist car finance websites that do |
| money to the purchase. The percentages may vary | | | | offer a broad-spectrum knowledge of how to |
| but asking for a big loan when you've only got 14.75 | | | | finance a used car and you may learn a lot from |
| pounds to offer as a deposit won't inspire confidence. | | | | reading through their services and advice. More |
| There may be some zero deposit deals available but | | | | importantly, you could also save yourself a lot of |
| it's worth remembering that these mean you're | | | | money! |
| borrowing more and therefore the repayments will | | | | Financing a used car will for many be easy. How to |
| be higher. In some cases 'zero deposit' interest rates | | | | finance a used car in the most cost-effective fashion |
| may also be higher. | | | | may be more demanding and need a little preparation |
| - Keeping your feet on the ground.Any professional | | | | combined with expert help to find the right deal. |