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Ways and Tips to Save Money Buying a Car

For many of us getting our drivers licence, after taking the time, energy and money for lessons, and practice drives, is a rite of passage. As in certain parts of he country, not everyone drives.

Driving and not needing public transport is a very liberating experience, and gives us more freedom in our travels, and where we may want to travel.

No waiting for the bus or the train, we can just get into the car and go.

Which brings up another aspect of freedom of driving, and also a slight bump in the road, so to speak, having your own car.

Having your drivers licence is great, but having your own car to drive is even better.

Car sales in the UK had been steadily rising reaching all time highs, however in recent times, we are seeing a change and a drop in car sales.

How we drive, and how we buy cars has changed and is still changing, and is looking to change even more in the near future.

Between being able to use a mobile app and hail a taxi to your door, car hire, and the fact self-driving, autonomous cars are here, and will soon be on our roadways, car ownership seems to be fading with each new generation.

However for now, that day has yet to come, and as a nation, we still like our cars and driving them.

Which again raises the question, we need to buy a car, how can we save money on buying one?

So some ways and tips to save buying a car, not an all inclusive list, but some tried and proven ways to save.

Choose the Right Car

Buying a car can be for many an emotional experience, it is also can be a costly one.

Our emotions run high as we as humans have a love affair with cars. We see a car we really like and want it, and just like all love affairs, it may not be the right one or car for us.

At age 23 wanting a Porsche may seem and feel like the perfect car, but the reality is you are probably more of a Ford Fiesta person.

The differences in price alone is enough to make you think twice, or three times.

Even if you could afford £50,000 for a car, it is difficult to justify that kind of money.

You need to buy the right car for you, and your needs.

If you just need a car to take you to and from work, consider a small runabout, if you need to do school runs with kids, then a sedan.

As we will see, the type of car you buy will have longer financial implications as well.

Do Your Research

The kind of car you buy as mentioned can have long-term financial implications, such as the cost of insurance, petrol, maintenance, road tax, etc.

If you live in a city or area where parking is at a premium, you may also have parking charges to pay on a regular basis.

When you find the make and model car you wish to purchase, do the research, find out how much the insurance is going to be annually, what are the average maintenance costs, fuel mileage, how much is it going to cost you to operate the car.

This not only may open your eyes as to the true expense of owning a car, but also aid in determining what car it is you will end up buying.

Buy Used or Previously Loved

Cars as mentioned and as we know, can be expensive, especially new cars. A new car can lose 25% or more of its value as soon as you drive it off the dealership’s lot.

So buy a used or pre-loved car. A car that is a few years old, or maybe last year’s model.

You can save thousands of pounds by avoiding a brand new car, and buying one a few years old. The savings can be massive.

Secure Financing in Advance

In buying a new car, and especially a used car if you purchase the car from a private seller, you should secure your financing in advance.

Buying a car from a private seller is another way to save money, however, most private sellers are going to want you to pay in cash, bank transfer. They are not going to finance the car, and may not want to wait around while you get financing.

And while having a dealership shop around for financing for you can be a way to save in some instances, if you have your financing in place prior to shopping for the car, you are like a cash buyer. You have a stronger negotiation standpoint.

Even if you have bad credit, you can still secure car financing before you go car shopping.

In fact the first port of call in buying a car should be getting your financing approved. This way you know exactly how much you have to spend on a car. No disappointments when shopping for a car, finding the car you want, only to find out it is outside of what you can be approved for in financing.

Timing

There are times in the year when dealerships look to move more cars, this can be based on a dealer looking to clear out cars for next year’s models, usually in September or October.

Some dealerships have quarterly sales to move cars, end of March, June, September, and December.

And some manufacturers offer incentives and sales on certain models at various times.

Timing when you shop and buy can save you as well.

So just a few ways and tips to save money on buying a car.

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Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
 
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”https://www.paydaybadcredit.co.uk/direct-lender/” data-mce-href=”https://www.paydaybadcredit.co.uk/direct-lender/”>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html” data-mce-href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html”>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”https://www.gov.uk/county-court-judgments-ccj-for-debt” data-mce-href=”https://www.gov.uk/county-court-judgments-ccj-for-debt”>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.