There's nothing more exciting than having a new set of wheels. But if you're in the market to buy used cars Brisbane, you want to make sure you're not paying top dollar. To do that, you'll not only want to strike the best possible deal on the vehicle's price; you'll also want to negotiate the best financing.
Check Your Credit Score
Before you start arranging your financing, check your credit score. You can check your score online for free, and knowing your credit score is helpful in two ways. First, knowing whether you have good or bad credit will give you an idea of what kind of interest rate you can expect to qualify for, and you'll be better able to evaluate the offers you receive.
Second, checking your score is a good way to determine if your credit report is accurate. If you find inaccuracies that are pulling your score lower, like accounts that are really in good standing but are recorded as delinquent, you'll be able to fix those errors before they impact your ability to borrow.
Know How Much You Have to Spend
Before you start shopping around for both a vehicle and financing, it helps if you have a clear idea of what you can afford. If you don't already have a budget in place, now is the time to develop one. Figure out how much you need each month to cover essentials like rent, utilities, and grocery bills. You'll also want to determine how much you spend each month on extras, like gym memberships and dinners out with friends.
Once you've done these calculations, you should have a good idea of how much money you can devote each month to a car payment. And as you review your financing options, you'll be in a good position to determine what you can afford.
Keep the Amount You're Borrowing Under Control
The lower the amount you're borrowing, the less risk you post to lenders and the better financing you'll get. So if you can lower the amount you're borrowing in the first place, by purchasing a less expensive car, striking a better deal on the vehicle price, or making a bigger down payment, you'll be rewarded with better financing.
Opting for a loan with a shorter loan term, such as a four-year loan rather than a seven-year loan, can also lower the risk you pose and the interest rate you end up paying.
Don't Lose Sight of the Total Cost of the Loan
When you're sorting through financing options for a used car, it's easy to fixate on the monthly payment. After all, this is the amount you'll need to factor into your monthly budget. But keep in mind that the loan with the lowest monthly payment isn't always your best deal.
The interest rate you're paying on a loan determines how much you'll pay out over the life of your loan. If you're weighing several financing options, be sure to do the math and determine if the lowest monthly payment really translates into the best deal.
Affordable used car financing is just a phone call away. If you're ready to purchase a used vehicle and want to be sure to get the best financing, call or email your local Brisbane dealership today.
