Is getting a car on finance a good idea?
Finance can be a good way of buying a car that you couldn’t otherwise afford. First thing to do is make sure you can afford the monthly repayments. Also think long term if your situation changes, lose your job, buy a house etc. What you can afford to pay now may not be the same in the future. Also shop around for finance, there are different types and different rates. Always use the APR to compare a like for like loan. Dealers will often quote the flat rate, but insist on the APR. If you are looking for a nearly new car, don’t necessarily drop a new car off the list. There are some great deals about on brand new and the finance is often cheaper than a used car so costs less in the long run. Yes all cars depreciate, but new cars don’t always depreciate as much as people think. One last thing, try to get the finance over as short a period as possible. Otherwise you end up paying for a car long after you’re fed up with it and want a new one. 2 or 3 years is the ideal but make sure you own
