Buying a Car on Finance? Look Out For These Five Traps

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Whether you have your eyes on the new 2018 models of your favorite car make, or would like to buy a used vehicle with more features, you need to be aware of the dangers of not reading the small printing and getting tied to an agreement that doesn’t suit your needs. From guarantees, to part exchange, and repair costs, there are several things you need to check before you can confidently sign the dotted line.

  1. Price and Value

When buying a new car you will try to get the best value for your money. This means that you should compare the price of similar cars, and calculate how much value they lose over the years. You can use a car value depreciation calculator to find out whether or not it is worth to invest in the car. If you take out a finance deal, and your car gets written off, you might end up owing more than the car is worth, leaving you with a shortfall. Find out how much repairs and parts cost, too. If your dealer offers Accident Management Service as a part of your deal, you could save money long term.

  1. Car Report

Whenever you buy from a private seller, you need to order a full car report, to make sure that you are buying something that is road legal. You can order your car report online, and check the repairs, the number of owners, and modifications before you would part with your hard earned cash.

  1. Customer Reviews

To decide whether the car is for you, it is good to have a look at customer reviews. You will find them on popular car dealership websites. If you are thinking about a certain model, you can find information about the driving comfort, common faults, and the different model versions, too.

  1. Part Exchange

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Your dealership is likely to offer you money off if you trade in your old car. It is, however, worth to visit more than one company to get a good idea of the trade in prices. Chances are you might be able to get a better price if you sold your car privately or to another dealer, but the company might throw in some extras to make your part exchange more appealing, such as free insurance or warranty.

  1. Finance Deals

When taking out a finance option on a car, you need to check whether you are signing up for a personal contract purchase or a hire purchase. Either way, you will not own the car until you paid it off, but there is a huge balloon payment waiting for you at the end of the personal contract purchase. If you cannot make the payment, you will either have to return the car or start a new agreement.

Buying a new or used car can be complicated. Do your research and make sure you read the small print to avoid disappointment. Work out the running and maintenance cost of the car, and be sure it ticks all your boxes.

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