How to find the best car finance deal

Roman Danaev

Car finance is a useful way to pay for a car in an affordable way. You can borrow money directly from a bank, finance company or credit union where you will agree to pay the amount back every month, plus a finance charge. This may be a better option for some people rather than buying a car outright. You will be able to get a car sooner, instead of having to save up over a long period of time. Deciding to buy a car with car finance can be pretty daunting, a lot of people don’t know where to start looking for car finance deals and are reluctant to try something, especially if they feel they might end up paying more than they would have to. If you feel overwhelmed when researching car finance, check out our top tips below on how to find the best car finance deals.

Seven top tips to find the best car finance deals

Push for a price discount before mentioning finance

If you can see that finance discount has been made by the finance company, then make sure you ask where the discount is for the car itself! Make sure you do this before you even say the word ‘finance’. If you can manage to swing a 10% discount, you have done a good job and can then move on to talk finance.

Make sure there’s a finance discount too

Once the deal on the car itself has been struck, move on to questioning the salesperson about the finance of the car or whether you need a deposit. You want to push for something that you know you can afford and won’t burn a hole in your pocket every month. Remember you have to live! Mention any relevant deposit contributions advertised on the manufacturer’s website.

Go for a car in stock for more haggling room

If you turn up to the showroom ready to haggle and fancy a car that is in stock, it might be worthwhile going for that car. You are more likely to be able to get a better deal from a car that is in stock as the salesperson will be more eager to get the deal all sorted that day before you can change your mind. If you are sure that you like the car and know that that is the best car for you, then haggle them down and go for it.

Ask for a service plan or free extras

If, after a lot of haggling, you realise that the dealer is unable or unwilling to drop the price of the car finance at all. Ask them if they will give you a service plan or throw in some extras. Many finance contracts make you service your car at a main dealer, which is normally more expensive than servicing somewhere else. This could, therefore, save you hundreds of pounds. If the manufacturer offers service packs, check the price beforehand, so you know how much you will be saving.

Shop around: talk to more than one dealership

You don’t have to be a deal finding Jedi to work out that the first place you look at is probably not the place with the best deals to offer. Car finance is the same as any other product, the more you look around and shop at other places, the more likely you are to find that little gem of a deal that is going to cause you to jump for joy. One way you can find the best car finance deals is looking out for a dealership that is having a summer/winter/spring/autumn sale that blows all its competitors out of the water for a week, you just have to dedicate the time to finding it.

Don’t be afraid to walk away

If you find a car that you really like but the car finance tips your budget by just a smidge and you know you can’t afford it, walk away. It may seem hard to say goodbye to the first deal you’ve really liked, but there will be other deals and other car finance options that are right for you. Don’t jump for the first thing that catches your eye as you may end up regretting it in the long run. If the dealer gets the feeling that you could leave at any moment, they are more likely to accommodate you and end up giving you the deal you need.

Leave enough time at the showroom

Salespeople know that most customers don’t leave enough time to find the deal that they need when going to a showroom. With other things to keep them busy such as work, kids, friends and sleep, they leave little time to squeeze in enough time to properly think about their car purchase. They, therefore, want to know as much as possible in as short a time as possible and are unlikely to get the best deal and risk choosing an unsuitable scheme.

So there you have it, the top tips for making sure you get yourself the best car finance deal possible. You may think a lot of these points are just common sense, but it is surprising how often common sense is thrown out of the window when it comes to making big purchases such as cars and houses. Always make sure you know as much as you can before entering a showroom or a dealership and you have an idea about the type of car you are looking for that will be useful for you and your family.


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