How to Save Money on your Family Car

There is no getting away from it, cars are expensive. Not only to own but also to run and keep on the road too. Just the initial cost of buying your car in the first place can leave you feeling as if you simply cannot ever afford to buy a newer car when you need one. One way that you can try to help spread out the cost of buying a car though, is to take out a car loan. Whilst car loans can be incredibly useful they are still going to come at a price. The good news is that there are ways that you can reduce the cost of your car loan; and here are some of the best.

Look at your Credit

Just like any form of borrowing; the type of deal (and rate of interest that you pay back for that matter) on a car loan, is going to be affected by your credit rating. If your repayment history isn’t that great, or you have a lot of credit taken out in your name, then chances are that you are not going to get as good a credit offer. Make sure that you repay things on time and work hard to reduce the amount that you owe to help improve your credit score

Don’t Finance with the Car Dealership

It may seem a whole lot easier to sign a car finance agreement at the dealership. But whilst a car dealer can sign you up for a car loan, they are acting as middlemen, which means that you are going to be paying them for arranging the credit for you. It is a much better idea to find a source for the money yourself, then head to the dealership to buy the car. That way you are responsible for the deal that you secure, not your car dealer.

Try and Save First

Loans are incredibly useful to finance a car purchase, but if you think that you can actually save the money (and you have time to spare before you need a new car) then it is actually better to save instead. Saving the money might take longer, but it means that you don’t have to worry about paying interest on what you borrow. You also don’t have to worry about paying it back as your car will essentially be bought outright.

Of course, some people are going to want to (or need to) buy a car in a very short space of time. Which means that you are going to find whichever deal you can and go for it. However, if you do have time to spare and want to shop around, then you can save yourself some money in the long term as well as treat yourself to a new way to get around!

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This is a collaborative post.