The end of the year can be a great time to buy a car as dealers look to clear current-year stock.
You may also negotiate a better deal as less people are shopping for cars and instead spending on holiday celebrations.
So if you’re in the market for new wheels, here are some considerations for financing your purchase.
Car dealer financing
Using the dealer’s financing options is often appealing because it is a one-stop experience. They will also be keen to do a deal so you can buy then and there.
While dealership finance can seem quick and easy, it doesn’t necessarily mean you’ve got the best loan solution.
Before settling on dealer financing, you should compare what other lenders can offer. In many cases, you may be able to get better terms and features than from the dealer.
A key advantage of using a broker well before you start looking is that they have access to many finance options.
They can also arrange pre-approval so when you do find that perfect car, you can pounce knowing you’ve got the funds even before you test drive.
Unlike many dealerships, brokers can also access car loan options for borrowers who may have an imperfect credit history or are recently self-employed.
Getting a pre-approved car loan is a good option if you prefer to shop around and want the flexibility to buy new or used from a dealer or a private seller. Find out more here.
Questions to consider
In any finance option, there are a number of features to consider when assessing whether a loan is right for you:
Can you make extra repayments? Is there flexiblity in the payment frequency? Are you able to package car insurance into the loan? There are a number of resources to help answer these questions, such as tools and calculators. Or, contact your nearest Liberty Adviser to go over your pre-approval options.