Do you know how to get the best car finance deal?

There are some excellent car finance deals out there just waiting to be discovered. The problem is that many people don’t know how to find them. Keep an open mind when starting your car search, and be sensible about your budget. Read on for more tips on securing the perfect car finance deal.


Consider your budget and think within it. It is important to make sure the monthly repayments are affordable for the entire contract length and that you won’t be pushing yourself financially to afford the repayments in future. Ask for details on the procedure that occurs if you miss a repayment; you need to find out if there are any penalties.

Extra Charges

Another area where there may be charges is if the opposite occurs and you want to pay backmore than the allotted amount each month. Making an early payment could incite an extra charge, so make sure you ask about this. You should also consider the full amount you will have to pay back so you can budget accordingly.

Interest Rates

Think carefully about the interest rate on the finance deal. If you can pay a bigger deposit, this could reduce the interest rate and therefore decrease the amount you have the pay back in total. It often makes sense to try to pay a large deposit as this can make the car cheaper to buy in the long run.

Insurance Options

Find out about motor trade insurance options available for the car finance, such as those available from
. Discuss PPI and other options as this could turn out to be expensive and you might only get limited cover. This BBC
article explores more motor finance issues,such as PCP and hire purchase options.

Running Costs

Your finance repayments are only one expense related to the car. You must also consider running costs such as petrol, insurance and MOT charges. You will also need to factor in any likely repair costs.