Anna Maria Richards
Find out some practical ways to finance your vehicle leaving your dream of buying your own car ever closer! Buying a vehicle, regardless of the model, is a dream come true for many. However, in order not to fall into traps and pay for a much larger amount than expected it is important to pay attention to some details. To keep you well informed and alert at this time, we have prepared 3 excellent tips on how to finance a vehicle, which will make your life easier and make that dream ever closer.
Some practical ways to finance a vehicle
1. Choose the Financing Model that best suits your financial conditions
There are several types of vehicle financing and each has advantages and disadvantages in relation to installments, fees and negotiation models, which cannot be left out. Below is a brief summary of each of these models to give you a real sense of how much you can afford.
Consortium
For those who do not need a vehicle urgently, this is the best option. The consortium has no interest and, in this case, only an administration fee is paid. The downside of this model is that, in order to have good financing, it is necessary to be drawn by the consortium, or to offer a good entry price.
Bank
Banks, by themselves, do not offer specific payment plans to purchase a vehicle, but it is possible to take out a loan to guarantee a cash purchase. However, you need to negotiate the lowest interest rates when making the loan.
Concessionaire
It is one of the most popular models, due to the lower interest rates. In some dealerships, they reach less than 1%. It is a good choice for those who can plan the purchase, but it is not the best option for those who purchase the first vehicle. This is because the values of the installments per month is not very inviting.
Leasing
This option is recommended for those who already have a good entry value and have their accounts up to date. The main advantage of Leasing, offered by banks, is the absence of the Tax on Financial Operations, which exists in other formats. The disadvantage is that the vehicle only passes into the buyer’s name after payment is completed, but even so, the most attractive rates are excellent.
2. Have a good input value
Like any other type of purchase, bargaining is an excellent way to get fair values, both for you and the seller. In the case of vehicle financing, the best way to negotiate is to offer a good amount of down payment, mainly to reach better market values. Consider having around 25% to 30% of the vehicle’s final value at hand, to negotiate on consortium, dealership and leasing models. As they have models with more varied interest rates, you can reduce them in a more moderate way. And remember to remain firm when negotiating. That’s because, at the time of the sale, the sellers will also want to profit from you.
3. Consider the extra costs of the vehicle itself
Finally, before financing a car, analyze what are your conditions to bear the extra costs related to it. Gasoline, taxes, fuel card which you can try it here, insurance, licensing, constant maintenance, and even those possible fines, cannot be neglected when deciding to purchase the vehicle. Remember that some of these costs will come in the same installment payment period. Therefore, they should be added to the final financing amount.
Did you like these tips? What questions do you still have about financing a vehicle? Be sure to ask, to ensure your motorized dream is economically and fairly.
