Car loans are one way to afford a new car. The problem is that you end up paying thousands more because of interest. The best thing you can do is get new car deals with 0% finance. Isn’t this easier said than done? The lenders are more careful with who they loan to but you can prove you are worthwhile and trustworthy.
Improve Your Credit Rating Before Applying
Before you even think about going for the best car finance deals, take some time to improve your credit rating. This will take a few months at least and is a slow process – you won’t go from poor to great within those few months. The past problems will still be there but by clearing your debts, getting on top of your payments and closing your dormant accounts, you can show that you are sensible with your money and make finances your priority.
Do this before you make an application. Searches will show up on your report and while not an instant problem, it shows other lenders that you are looking for finance. Looking for a lot of these new car deals at the same time can come across as stretching your funds too much; even if you are not.
Put a Note on Your Credit Report
If you went through a bad time with your finances, make sure you add a note on your report. You can usually add up to 200 words to explain why you hit financial problems and show that they are over; most of the time this is due to lose a job or a family death or other major change.
Prove You Can Afford the New Car Deals
Take in copies of your bank statements and pay cheques to prove that you can afford the deals. Lenders don’t have to take these into account for approving 0 car finance but some will and is useful for those who are self-employed or run their own business. Prove that you have the disposable income to take the loan and you will not let your monthly payments slide.
High interest rates are applied when lenders worry about your financial situation. When finding new car deals with 0% finance, you need to prove to the lender that you aren’t a risk and they will get their money back.