Call0800 066 2888

Spread The Cost

Spread The Cost

Calculate My Loan
Monthly Payment £0
Total Repayable £0
(7.8% APR illustration)
Apply Now
This does not constitute a quote, it's for illustration purposes only. Rates may vary depending on loan amount and individual circumstances.

5 Secrets to Finding Cheap Car Finance

May 31, 2016

Car finance can often be the most cost effective way of purchasing a car – allowing you to get the exact car you want while providing a more manageable way of making the purchase. Finding a cheap car finance deal can be difficult and often requires you to explore several avenues to ensure you’re getting the most for your money. In today’s post, we’re uncovering 5 secrets to help you find the best car loan rates for you.

cheapcarfinance

Work on your credit rating

Improving your credit rating is crucial if you’re looking for the best car finance deals. By assessing your credit score, lenders can make an instant decision as to whether you’re likely to be able to afford repayments and, ultimately, find you the best deal available. Missed bill payments can have an unwelcome impact on your credit rating, so try to organise your outgoings and pay everything on time.

There are a few simple tips for improving your credit rating, including ensuring you’re on the electoral register and avoiding submitting too many consecutive credit applications. Try staggering your finance applications and avoid applying for any credit for a few months if you’ve recently been rejected.

Secure your car loan

Secured loans are given for purchases such as houses, cars and expensive equipment for businesses. This type of loan generally comes with a higher acceptance rate, as your loan can be secured against an asset – giving lenders peace of mind and resulting in a lower interest rate. The interest rates on a secured loan are usually fixed – and applicants are generally able to borrow larger amounts. Better yet, when securing your loan against an asset, you’ll increase your chances of being approved for a cheap car finance deal.

Get a custom car finance quote

Browsing the car finance market before you make a commitment is vital – and by experimenting with car finance calculators online, you can get an idea of what you’ll need to repay each month. With the help of these nifty online tools, you can determine exactly how much you’d like to borrow and whether your monthly repayments will be manageable in the long term.

Shop the used car market

Shopping the used car market has several benefits. Aside from being considerably cheaper, used cars often come with the best car loan rates – and used car finance is all but guaranteed to prove more affordable overall. Brand new cars lose value almost immediately after they’re purchased – with some models losing up to 40% of their original value in the first year alone.

Buying a used car means you won’t need to worry about depreciation, and insurance rates are also a lot lower – so if any damage occurs, it won’t break the bank. If you shop around, second hand cars often have plenty of miles still left on the clock, and are in reasonable condition – meaning you won’t have to compromise on quality to get a great price.

Try our used car finance calculator to see what you could save by purchasing a pre-loved model.

Get approved in advance

Securing your car finance in advance means you can start shopping around for the best possible deals on your next car. Knowing the financial side of things is taken care of will make negotiating a price much easier – and you’ll be able to start shopping with a clear vision of how much you’re willing to pay, leading to a faster purchase.

If you’re ready to find the best car finance deals for you, give our car loan calculator a try today. Or if you can’t wait to get the ball rolling on your application, now’s the time to fill in our online form and take the next step towards a new model.

Calculate your loan
Apply now

About The Author

Jon Le Roux is co-founder and company director of The Car Loan Warehouse. Being a mad engineering and motorsport enthusiast, I spend more hours than is healthy, watching, reading or talking about cars, boats, motorbikes…..basically anything with an engine.