You are looking to purchase a new or used car and you want to use finance to do this. However, you should be aware that the financing often offered by a dealer, even if they contact lenders directly on your behalf may not be the best deal that they can get for you. Therefore if you are looking for a great deal it is best that you contact the lenders directly (there are many company’s now advertising not only on T.V., but in newspapers and on the internet) offering great deals. Then when you have looked at the offers you have been provided with directly, look at what the dealer’s lenders are offering. It is advisable to shop around for the best deal possible and don’t forget to compare the annual percentage rate (APR) that they put on their loans. It is advisable when negotiating finance for a car to no focus on the monthly payments that you will be required to pay, but rather how much you will actually pay in total at the end of the finance agreement.

In some cases you may find that dealers are offering very low financing rates or specific cars or models and they may not actually be willing to negotiate any further on the prices of these cars. However, you may also find that the only way to qualify for the special rates they are offering is by you making a large down payment in the first place. In these conditions you may find it more affordable to pay a higher financing charge on the car that you want that is lower in price or that you purchase a car which only requires a smaller down payment instead.

But remember before you sign anything, you need to look at and consider the terms the financing is offering to you and whether it is actually affordable.

Also there may be some extras that some dealers and lenders may ask you to purchase such as credit insurance, which ensures that your loan will be paid off should you die or become disabled suddenly. It is advisable that you consider the cost of purchasing credit insurance before buying and whether it is worthwhile. It may be advisable to check any existing policies you have to ensure that you do not duplicate these benefits.

It may be a case of looking to see if you have any capital locked up in your home that could be used for buying the car of your dreams. The way of doing this is to release such capital by taking out a home owner loan. Such loans can be used for any purpose and are available to anyone who owns their own home.