Should I get the car first or the loan?
There are four reasons why you should organise your finance before you start shopping for a car.
1. Know your limits – One benefit of approaching a lender at the start of the process is you’ll find out how much you can borrow. That will tell you how much you can spend, which will prevent you buying a car you can’t afford.
2. Shop around – If you organise your loan first, you’ll have time to explore your options, thereby giving yourself the best chance of choosing the most suitable product. But if you buy first, you might be forced to accept the fastest loan rather than the best loan.
3. Fix problems – While you’re shopping around, you might be surprised to discover certain factors that limit how much you can borrow. Identifying these problems early might give you the chance to fix them – and increase your borrowing capacity.
4. Get expert advice – As part of the loan application process, you’ll need to discuss your financial position with the finance broker or lending officer. This might reveal that your interests would be best served by delaying your purchase.