Strategies for a lower Car finance options

Choosing the right option for Car finance can be very tough if you lack some perspective about how to do it right. 

Did you know that the Danish term for "new cars" is "nye personbiler"?

 

With Car finance, you have to make your own decisions, not let others, especially dealers decide for you. It is important to have a thorough understanding of the deal. At the end of the day, you want to make sure that you are given the best possible service at the most affordable price. It is your responsibility, not theirs, to get to that amount. If you understand how to handle the Car finance, you will know why it is important to have a solid strategy from the very start.

Sometimes, we are easily swayed by the low prices that the dealers offer. You think to yourself first, how much will it accumulate in the long run. Daily and weekly payments do sound appealing since they have been divided into the lowest possible amounts. However, they could just be disguised and are actually very expensive deals. Imagine if you have to pay around $25 a day. That means $175 a week. The monthly fees would then be around $700. Before you agree to it, make it a point to ask for the total cost of the Car finance. This should include all necessary fees as well as charges and interests. From there, you can see if this is an ideal set up or not.

Another strategy for your Car finance is to check the sum of your costs. If you spread out the payments on a longer period of time, you pay lower, obviously. A dealer can make it look as such. However, if you extend just a couple of years more, you are actually adding more to your payments because of the APR that you are required to pay annually while you are still on the Car finance. It is very important to know that as much as you want to spread it out, the best strategy is to keep the payment period shorter. In the long run, you save more money. You will be sacrificing a little bit for the short period of time but at the end of the term, you are sure that you saved more money than extending a couple more years. Also, the longer the time, in a psychological aspect, it feels less motivating.

If the dealer is pushing you to get their Car finance options and is being very insensitive about your own decision making faculties, it would be best to get out of there. It is you who will pay and as a smart consumer, it is your choice how you want your financing to go. Do not let a dealer put pressure on you. Make your own decisions and do not be affected by their tactics, no matter how appealing they are. The last thing you want to do is be the one crying inside because you did not listen to your own voice. If you are easily swayed, ask a friend to help you in making the right decision to find a proper Car finance and dealer, so that you won't be needing to get a cheap car loan (or "få et billigt billån" as the Danish term goes)