The Car Loan Warehouse | How to Get the Best Car Finance Deals

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How to Get the Best Car Finance Deals

April 19, 2016

Whether you’re looking to buy your first car or on the hunt for an upgrade, if you’re considering car finance as your route to purchase, it’s easy to become overwhelmed by the diverse range of finance options and deals on the table. You’ll no doubt want to find the best deal for you, but wading through the complex financial terminology and minefield of offers can be confusing!


From optimising your credit score to shopping around to compare the best interest rates, there are a variety of ways to improve your chances of finding cheap car finance. Today, we’re bringing you a comprehensive breakdown of factors you should consider when trying to find the best car finance deals, so you can spend less time in the dark and more time on the road.

Saving for a deposit

While there are a number of no deposit car finance options available, if you can save for a deposit, it’s an easy way to reduce the cost of your monthly repayments and secure a better deal. With interest rates still low, holding onto your savings is unlikely to generate enough interest to cover the higher rate of interest you’ll incur on your car finance – so you may be better off breaking the piggy bank and putting your cash towards a deposit. By putting down a chunky deposit on your next car, you’ll be borrowing less money to cover the balance – translating to lower monthly repayments.

When it comes to searching for cars on finance, no deposit deals are a desirable option. If you’re struggling to save, or splashing the cash on a down payment simply isn’t an option, don’t worry – there are tons of alternative options available to help you secure affordable car finance.

Choose the right car finance deal for you

Finding the best car finance deals largely depends on your needs and what you can afford to repay. While hire purchase may be ideal for one person, a Personal Contract Purchase (PCP) may be better for someone else. Click here to read more about the different types of car finance available and work out the most appealing option for you.

It’s also worth considering how long you intend to have the car. If you spread out your repayments over 5 years rather than 3, your monthly repayments will be lower – but you’ll end up paying more interest in the long term. If you plan on owning your car outright and want to keep the overall cost as close to the list price as possible, you may be better off taking out a shorter finance deal and paying it off faster – incurring less total interest.

Try experimenting with our car finance calculator to get a better idea of how your repayment period can affect the total amount you’ll need to repay:

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If you’re looking for the deal with the lowest interest rate, it’s important to find out the APR of the car finance deals on offer. If you’re comparing two different loans, make sure you factor in the term and amount borrowed for each (working out the total amount you’ll repay over the duration of the lending period, and selecting the one that’s most affordable in the long or short term – depending on how long you plan to keep your car).

For more information on the factors that influence a car finance deal, get in touch with our team of friendly and knowledgeable advisors by calling 0800 066 2888.

Nurture your credit rating

While tidying up a poor credit rating isn’t something that can be done overnight, it is something you should be working towards – putting you in a great position to access the very best car finance deals. With a strong credit rating, you may even be able to access exclusive 0% car finance offers or 0% APR car deals. These are typically reserved for buyers with strong credit ratings and a decent up-front deposit – demonstrating that it pays to look after your finances in the long run.

There are some simple steps you can take to boost your credit rating, like ensuring you’re listed on the electoral register or taking out a credit building credit card to show lenders that you’re capable of borrowing and repaying money responsibly.

When it comes to shopping around for a deal, be careful you don’t apply for too many loans – as a number of credit checks or rejections in a short period of time can damage your credit score. Click here to read more about improving your credit score if you’ve been refused car finance in the past.

Shop around

Car finance brokers like The Car Loan Warehouse work with a wide variety of lenders, meaning they can easily source the best of the cheap car finance deals on offer. If you choose to finance your car directly through a lender, you’ll need to manually compare quotes – with each credit check potentially damaging your credit score. If you do intend to take out finance through a dealership, it’s a good idea to visit two competing dealerships in your area and barter for the best car finance deal.

While guaranteed car finance is something of a myth, you’ll maximise your chances of getting approved and finding a great deal through a broker.

Don’t forget running costs

Cheap car finance will reduce your monthly repayments, if you’re on a budget – but don’t forget to factor in your new car’s running costs. At the end of the day, affordability comes down to income vs. outgoings – so by working out your monthly finance repayments, plus the cost of fuel, insurance, tax and servicing, you’ll be able to calculate exactly what’s within your budget.

Apply for a competitive car finance deal today with The Car Loan Warehouse today to find finance you can afford. Applying is easy, and we’ll process your application and get back to you within the hour. There’s no obligation to take a loan and it’s free to apply – so what are you waiting for?

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If you’re still making your mind up or trying to hunt down the best deal, don’t hesitate to give our team a call on 0800 066 2888 to discuss the best options for you.

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.