When obtaining finance for a new car, you might want to look for a low interest loan that you can repay over a period of time. Many lenders offer car loans, but you will need to do your research in order to find finance that offers you the best value for money. Here are some tips when buying cars with a low interest loan.
1. Finding the best interest rates
A loan comparison website will let you compare interest rates from many different lenders. Here you will be able to compare the interest rates charged by these companies, the amount of finance you can apply for, and the different repayment methods available to you.
Remember – not all lenders are included in these comparison websites, so you might have to do your own research to find the best deals. Visit the websites of lenders that offer low interest car loans, and contact a member of staff if you want to obtain a quote. Once you have whittled down your list to one or two lenders that you are interested in, read through the terms and conditions on their website, and find out how you are able to make repayments. Third party review websites can also be useful; here you can find reviews from previous customers who have used a particular lender in the past.
2. Check your credit report
The type of finance you can apply for will often be dictated by your credit rating. It’s always a good idea to check your credit report before applying for a car loan. You can either get a copy of your statutory credit report for free, or use one of the three main credit reference agencies to find out more about your financial history.
3. Have your documentation ready
You will need to have the right documentation when applying for a car loan to speed up your application. Find out about the documents you will need to provide in order to verify your identity or financial status.