When you’ve worked out what you can afford and you’ve found the car you want, it’s time to find your best finance deal. That’s right – you don’t have to accept the first finance offer that you get. You can apply for a finance deal with a number of credit providers before choosing the one that offers you the best interest rate, repayment period and overall deal.
At most dealerships, the in-house Finance and Insurance Representatives (F&I) can submit one application for finance to different credit providers. If you decide to take on this process yourself, you will need to complete a separate application for each credit provider that you approach. The F&I is legally required to give you fair advice, so when they give you the various finance quotes you are more than welcome to ask all the questions you need, to fully understand each offer.
You may also be offered various value-added products along with your finance agreement – either by the credit provider offering you the loan or by the dealership you’re buying the car from. If your car is new it will usually come with a manufacturer warranty, and the dealership may also offer you a service or maintenance plan. The credit provider may also offer you service or maintenance plans as well as insurance options including credit protection, shortfall insurance and scratch and dent cover. You have the option to include these in your finance agreement, which means you’ll be paying for them together with your car as a single payment each month.
Comprehensive insurance is required for any vehicle finance agreement, but you have the choice to use your own insurance or to take up insurance with your finance provider.
When it comes to the actual price of the car you’re looking at, always try to negotiate with the dealer. You may be able to get a higher amount for the car you’re trading in. There’s no harm in asking!