The terms of the deal
While the idea of buying a new car seems like an exciting process, it is vital to acquaint yourself with some important facts before signing your vehicle finance contract.
If you are approved for vehicle finance, the fiancé houses will come back with an offer with the main terms concerning the amount, interest rate and residual amount if requested.
One of the first steps of the car-buying process is working out what vehicle you can afford. Look at your budget to see how much you’ll spend on car repayments. Monthly repayments aren’t the only costs to worry about, and your budget needs to reflect that.
The best way to approach vehicle finance
When negotiating a vehicle loan with your financier, one of the most important decisions faced with is whether you wish to have a ‘Residual Value’ or ‘Balloon Payment’ on the loan. These terms, which are essentially the same thing, are very often grossly misunderstood by customers and deserve to be looked at closely.