It may take longer than you’d like, so understanding how it all works can help to remove a lot of the frustration.
Buying from a dealership
- When you’ve found a car you want to buy, you need to get your ID, payslip and proof of residence ready.
- At the dealership you chat to someone, usually the finance and insurance representative (F&I), who will help you with your application for car finance.
- You sign an offer to purchase for the car you want.
- The F&I will advise you every step of the way, draw up the finance deal and submit your application, usually to a number of banks and lenders.
- If your application isn’t successful, there are things you can do to try again – add or increase your deposit, change your finance term, add a balloon payment or find a cheaper car.
- You’ll need to have comprehensive insurance, which is compulsory for all finance agreements.
- You’ll also have a chance to add value added products to your agreement, like an extended warranty, extra insurance etc., which the F&I can guide you through.
- Get your keys, sign a delivery note for your new wheels, get in and drive off!
Buying privately
The process works a bit differently if you’re getting a loan to buy a car from another person.
- Apply with a bank that offers finance for private car sales.
- Have the car run through a technical inspection and roadworthiness test – some banks require the seller to do this.
- Put together a signed letter of sale between you and the seller that includes the following details:
- The time, date and location of the sale
- The make, model and registration number of the car, as well as its VIN and engine numbers
- The price of the car
- Both your and the sellers’ names, ID numbers, contact details and addresses
- Make sure that the seller has received the money and meet with them to take delivery of the car.
- License and register the car in your name.