As exciting as buying your first car may be, there are quite a few things you need to take into consideration before making a decision such as:
How much will I be able to afford to apply for car loan?
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What type of finance will I be able to get?
Where should I buy my car?
Is it better to buy a new or pre-owned car?
In this article, we will give you some important tips to help you on your way to making the best possible decision.
How much money do you want to borrow?
Before you go shopping, determine how much money you can afford to borrow. This can be done by looking at the type of car you want and dividing the price by 36 months.
Shop around for finance
Shopping around for a new car is exciting and comparing different prices and car brands is important. The importance of shopping around for car finance should however also not be underestimated. Banks often give better interest rates than when you get finance through a car dealer. Also, getting finance through a bank will give you more bargaining power.
Not only is it important to shop around and compare apples with apples so that you can get the best possible finance deal, but it is also handy if you know, before you start car-shopping, how much money you can spend.
The best way to do this is by contacting your bank and getting a pre-approved loan. The pre-approval documents can easily be printed out via the bank's website, and with this information, you can start shopping with 'cash in your pocket.