Buying a new car is a big deal
We’ve pulled together a few helpful hints to help you out with the big decision.
03 Nov 2015
Buying a new car is the second biggest purchase most of us will make in our lifetime, so it’s important to take the process seriously and make sure you have all your angles covered.
Car loan repayments are a big commitment - don’t take them lightly. It’s essential that you do your research in order to make the right decision when it comes to choosing a car loan option that will work for you, both now and in the future.
Understanding how much you can afford to borrow, both now and if things changes, is crucial as changes in your monthly income and outgoings could effect affordability of your loan. Of course your monthly budget must include your loan repayments, but should also take into account things like vehicle servicing, registration, insurance and on-going fuel costs. If you haven’t prepared yourself for all the costs associated with a new vehicle, you could find yourself in trouble if you are unable to make your monthly repayments.
Our best advice is to save, save, save! The more finance you are able to save to put towards a deposit when buying a new car, the less you will have to borrow and the less interest you will have to pay to your lender. Use our car loan repayments calculator to see how much your monthly repayments will be with Liberty, as well as how much interest you will be likely to pay over your total loan period.
Do your research and shop around. Don’t be too quick to jump at the first shiny new car that crosses your path! Don’t cave in to a pushy car salesperson and resist the temptation to make a decision on the spot - despite it seeming like a great deal at the time.
Be 100% clear about the repayment amounts, the interest rates, and the loan terms and Conditions. Ask an expert about the loan features and flexibility, for example can you make extra lump-sum repayments on the loan or take payment breaks?
Be patient. It can take time to get the most suitable loan arrangement for you. Do your homework and ask an Adviser to review your present circumstances and to help you make the best decision about your car finance.