How to finance a hot car on a budget

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A car is something many people can’t go without and because it’s a big part of your life and something you’re going to have for a long time, it makes sense that you’d want something cool and to your taste. Whilst you may drive your car a lot and get your money’s worth out of it, that doesn’t mean it’s going to be easy to pay for and it’s important to put a lot of thought into the financial aspect because you rush into making a purchase.

Know what you want

First of all, you need to know exactly what you’re looking for and what you can afford to spend. You should find out more about yourself and what you want than about other dealers and prices, because it’s easy for a dealer to beat a price and give you a deal which isn’t what you really need. Figure out what kind of down payment you’re okay with paying and think about exactly what you want from your car. Don’t settle for anything which doesn’t meet your needs, because everything else can be arranged when you are negotiating.

Keep things to yourself

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The key to getting a good deal is to not tell your dealer things which may seem like vital information. This works because in the financial world, information equals power, and the more information you give the dealer, the more money they will be able to take from you. Don’t tell them how much you can afford to spend, and if you have money for a down payment, don’t give them the full amount. They will intentionally start their prices off high, but as long as you are offering a realistic price, you don’t need to be shocked by this. Keeping your budget to yourself will help you to negotiate a lower price.

Be realistic

If you’ve got your ideal car in mind but you don’t think you can afford it, try looking for something else. You can negotiate all you want but no dealer is going to offer you a car worth double what you’re willing to pay. Make sure that your budget matches your expectations. Negotiation works both ways, and even if you think their starting price is unreasonably high, you’ll only be able to lower it down so far. If you can’t afford the kitted out car of your dreams, try searching for practicality instead and see if you can make improvements to the car yourself after you’ve bought it.

Consider your most suitable payment method

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There are lots of different ways in which you can pay for a car and it’s important that you consider carefully which would be the best way for you. If you have savings, your easiest method may be to simply use them to pay. This way you won’t have to borrow any money and you can avoid debts or interest charges. However, if you have decided to borrow then development finance institutions are feasible.  You may find it easier to use your savings just for some of the payment and to borrow for the rest. If you can’t afford to pay for the whole car there and then and you’d rather not take out a loan, you can arrange to pay on a Hire Purchase basis, where you’ll pay a deposit or a down payment, and then pay the rest in monthly blocks. However, if you opt for this method, you should note that the car will not officially belong to you until the final payment is made.

Ask about an i-deal agreement

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This is one of the best car finance deals from Fiat available and it allows you to keep your options open, which is something many people prefer to do when they are going to invest a large amount of money into something. All you need to do is pay a deposit and set aside a certain amount of money. This is the Guaranteed Minimum Future Value for your car. This way, you will have multiple options when your agreement comes to an end. You can either keep your car and pay the outstanding money, part-exchange it so that you get some money back to put towards a new car, or return it, although this will depend on whether you have gone over your agreed mileage and on the condition on your car.

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