Getting the best car loan without negotiating with dealers
Car deals are now easy without any negotiations.
08:04 15 September 2013
The average UK citizen who wants to purchase a car has to sign up for some kind of car loan. However, most car dealers who can offer the car loans will strive to make it work in their favour. Plus, there is nothing more frustrating than finally finding the car you want and then realising you don't qualify for the loan. But there are other ways of getting a car loan that don't involve dealers; arguably the best of them would be the pre-approved loan. And this is why:
- The pre-approved car loan buys you time. You will know from the very beginning exactly where you stand financial-wise and won't have to negotiate for the car you want with the dealers. You only have to focus on what car to buy – as if you were paying for it in cash.
- When signing for a car loan with the dealer, you let him set the monthly instalment of the loan and all of the other financial factors, such as the term and total amount of the loan. By getting a pre-approved loan however, the lender takes care of all of those problems.
- In the case of pre-approved loans, the lender will work with the dealer. That means that all of the details regarding the actual car loan are not your concern anymore – you already took care of that when you negotiated with the lender.
- Some dealers will try to persuade you that they have better deals than the lenders when it comes to car loans. Remember that their interest is to make the loan work in their favour and don't forget to compare his offer with the lenders. Sometimes it may actually be a better one.