Thinking of buying a car on finance? It may seem like a confusing or difficult process. The truth is it doesn’t have to be. Here are Creditplus’s three simple steps to get the best car finance deal.     

When it comes to finding and buying a new car, everyone wants to get a good deal – especially when it comes to getting a car on finance. No matter how much money you may or may not have, you want to be sure that you are not just getting a great car, but you are also getting the best possible car finance deal.

But with so many options in today’s car buying market, it may seem a little daunting. How can you be sure that you are getting the best possible finance deal for your personal circumstances? Here at Creditplus, we’ve put together three simple steps you should take to ensure that you get a fantastic finance deal AND a great car to go with it.

Step 1 – Know your credit rating

Not so long ago, knowing what your credit rating was and what that score meant was a bit tricky. There were only a few companies around that would provide you with a breakdown of your credit history and how it was calculated. Not only that, you had to pay for the privilege!

But in today’s world where everything is easy and online, there are a number of companies that will provide you with your credit score for free. All you will need to do is answer a few questions, such as your address and employment history, and you will be given a score. This score will let you know what your credit rating is – excellent, good, fair, poor, or bad.

So how does this help with getting a good car finance deal? Well, the interest rate you will be offered is based on your credit rating. By knowing what your credit rating is, you will be aware of what sort of deal you are likely to get. You can do this by using a car finance calculator.

You will also be aware of when someone is offering a deal that is too good to be true. Some lenders will advertise a fantastic rate, only to change it once you have started the application process. Choosing an ethical lender will prevent this from happening.

Creditplus Tip

Confused by some of the terms being used in a finance agreement? You can find easy to understand explanations of terms and phrases used in car finance using the Creditplus car finance glossary.

Step 2 – use a company that provides a soft credit search

Once you know your credit rating, you can start looking for a car finance deal. But how can you look at a selection of car finance deals without it affecting your credit rating?

It used to be that applying for any sort of finance agreement would be recorded on your credit history. So when lenders saw that you were applying for a deal with them, they would notice just how often you have been applying. If you have applied for a large number of finance packages, the lender might think you are desperate for a loan – what could be a risky proposition. So they could either refuse to provide you a finance deal or give you one at a vastly inflated interest rate.

Choosing a finance provider that conducts a soft credit search means that, when you apply for a car finance package, you’re credit rating won’t be affected. That means that when you apply and receive your finance quotes, it won’t affect a future application if you decide not to progress.

Why is this so important? Car finance deals are based on your personal circumstances. No matter what your credit rating might be, you will be able to find some form of finance package. Being able to apply and get an idea of what sort of car finance deal you qualify for, without any problems for your credit rating, means you can take a look and see what’s on offer. You can then either go ahead with a deal, or decide to try and improve your credit rating and then apply again.

Step 3 – find a provider that will compare car finance deals

When it comes to any type of finance package, you want to be able to compare a number of different packages to try and get a good deal. If you’ve take the first three steps, you’ll know what your credit rating is and that applying won’t affect your credit rating. So the next step is to find a provider that will compare a variety of car finance deals for you.

A good car finance provider will work with a selection of different lenders who provide different types of finance for consumers from different backgrounds. Some will cater solely for those with an excellent credit rating; others will cater for those with a less positive financial history. Your provider should compare a number of different deals and then present them to you, explaining the pros and cons of each package.

Creditplus tip

To get an idea of what lenders work with a car finance provider, take a look at their website. They will provide details of the lenders they work with.

You’ve found a great car finance deal, now what?

If you’ve followed these three simple steps, you’re well on your way to getting a great car finance deal. But what comes next? The car!

If you have found a car already and spoke to the dealer, then that’s great. But in most cases, you will have researched car finance deals before searching for a car, so you can find out what you can afford.

In that case, using a car finance provider that can also help you find a car that matches your needs is a great way to save time and effort. Creditplus have a unique find, fund and deliver service that will help you through the complete car buying process, from the finance package to an RAC approved car.

Start on the road to your new car

Creditplus have been providing ethical car finance for over 14 years, helping thousands of customers get behind the wheel of a fantastic new car with a car finance deal that suits their personal circumstances. But don’t take our work for it, check out what our customers think – Creditplus customer reviews. 

Start your car finance journey by taking a look at the Creditplus vehicle search. Then, simply Apply online and your dedicated customer advisor will begin taking you on the road to your fantastic new car (with a car finance deal to match!).