Buying a car, regardless of the model, is a dream come true for many. However, to avoid falling into traps and paying for a much higher value than expected, it is essential to pay attention to some details. To keep you well informed and alert at this time, we have prepared three excellent tips on how to finance a car, which will make your life easier and bring this dream closer and closer.
Some practical ways to finance a car
1. Choose the Financing Model that best suits your financial conditions
There are several types of vehicle financing, and each one has advantages and disadvantages with installments, rates, and negotiation models. Some of these models include: Consortium, Bank, concessionaire, Leasing, etc
2. Have a good input value
As with any other type of purchase, bargaining is an excellent way to get fair values for both you and the seller. The best way to negotiate in car financing is to offer an excellent down payment, mainly to get better market values.
Consider having about 25% to 30% of the vehicle’s final value on hand to negotiate on the consortium, dealership, and leasing models. Then, as they have models with more varied interest rates, you can reduce them more sensibly.
And remember to stand firm when negotiating. This is because, at the time of sale, sellers will also want to profit from you.
3. Consider the extra costs of the vehicle itself
Finally, before financing a car, analyze your conditions to bear the extra costs related to it. Gasoline, taxes such as IPVA, insurance, licensing, constant maintenance, and even those possible fines cannot be neglected when deciding to purchase a vehicle.
Remember that some of these costs will come in the same payment period as the installments. Therefore, you must add them to the final amount of the financing.
Did you know?
Financing and syndication are not the only loan options for buying a car. If you are thinking of purchasing a new vehicle, personal credit can also be a solution that fits your pocket.
A personal loan is a good solution for those who want to buy a car but do not have the total amount to pay for the good in sight.
As a Canadian fintech company, Car Loans Canada disrupts the automotive space by giving consumers the power to buy a car. The aim is to ensure consumers get the information and vehicle financing they need, to access the vehicles they want.
Another advantage of taking a loan to buy a car is that the consumer can arrive at the store with the value in cash, which gives him greater bargaining power. That is, even if he has to pay interest on the loan, he can earn a discount on the vehicle’s value when negotiating with the dealership.
In general, car financing has better interest rates than most other financings, but a personal loan is an option for those who have not found suitable financing that suits their needs.
In addition, the personal loan can be a good option for those who are buying a vehicle from an Individual or when the customer wants to buy an older used car, as some entities do not accept financing.