Car Loans By Matthew Bourne At Isnare.com Ezine Articles

Many car buyers, especially buyers of new vehicles, are increasingly opting to make their purchase on credit with loans. Car loan deals are easily accessible to car buyers these days, with car loans available over the Internet as well as over the telephone and at high street lenders. Car dealers and traders too have now jumped on the car loans bandwagon, many offering a range of finance deals that include incentives such as interest-free periods on loans and free insurance.

A substantial part of a car trader's turnover can in fact be made through offering car loans to their customers, with as many as one in six buyers taking out car loans on the spot. And on the face of it, some forecourt car loans deals look good value for money, especially with the incentives thrown in. It was in fact recently reported by Alliance & Leicester that 17% of car buyers thought that vehicle loans offered at showrooms represented the quickest and cheapest option when it came to buying a car on credit.

Car buyers beware
But, car dealer loans may not be the best route to take for car buyers who want to drive a bargain with the dealer. Whilst the average car finance package has an APR of 12.4% according to research by Alliance & Leicester, vehicle loans available over the Internet can be acquired with an APR of just 5.8%. This could offer car buyers a mammoth saving, even when the incentives from the car dealer are factored in.

Additionally, arranging your loans in advance will not only save you a fair amount of money over the long-term, it can also save you money in the short-term by increasing your negotiating power when buying your car. This is because you will have already set a limit on the amount of money you can afford to pay the seller through the pre-arranged loans.

Negotiating your car purchase
To get the best deal on your car purchase you'll need to decide which type of car you want and how much of a loan you can afford. Take some models for a test drive at your local dealer to get an idea of which car suits, inquire about prices and then walk away. Your next move should be then to arrange the loans for your purchase. Depending upon the value of the car you're buying look to arrange your loans for £500 or £1000 less than the price of the car on the forecourt. You can then go to the dealer and buy the car telling them that you only have 'x' amount available to pay as a lump sum. Some dealers might go for it and sell you the car on the spot - a good result for only a little bit of effort!

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