You have found the car you wish to purchase and now just need finance before you can drive your shiny new vehicle off the car yard. Great! You have come to us and we can help.  Here are a list of things you need to ask your car finance people before selecting them. We are only too happy to answer all of these for you.

Not all car finance outlets are the same.  Don’t get trapped in a company which will over the term cost more than in needs to.

Ask about the interest rate. Is it fixed or variable? A fixed interest rate means the repayments stay the same for the term of your loan. It makes budgeting easier as you will always know what your repayments will be. A loan with a variable interest rate can change which means your repayments will as well.

What is the term of the loan?  Be sure to find out what the term of your loan is. Some finance contracts with low interest rates stipulate in the fine print that the loan term has to be a specific time period, usually 2-3 years. This will make your monthly repayments higher. It may suit you to have lower repayment over 5, 6 or 7 years.

Is there a balloon payment required at the end of this loan? Loans with a balloon structure mean that your monthly repayments will be lower, however you will have a lump sum payment to make at the end of the loan.  This type of loan may be suitable for some, but may be an expensive surprise if you’re not prepared.

Check if there is an establishment fee or a yearly administration fee that will be charged.  Take this into account when you are doing your budget and crunching the numbers.

Can I make extra payments without financial penalty? You should always ask if you can make additional repayments on your loan without being charged a fee. Some loans attract a fee if you want to make additional payments.

We are happy to answer all these questions for you regarding car finance. We can also provide boat finance, motorbike finance, caravan finance, marine vehicle finance, machinery finance and tractor finance.