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How to make your finance more affordable

How to make your finance more affordable

If you missed Step 1 in this series then have a look back at why you should sort out your car finance first. Or if you want more information you can read our full Car Buying Guide here.

In this post, we take a look at ways to make your car finance more affordable.

Step 2: Make your finance more affordable

At this stage, you should have made a decision on what type of car finance is right for you. Your next step should be ensuring that your payments are as affordable as possible. Below are some of the ways you can reduce your monthly payments.

Deposit amount

Many car finance companies don’t require you to put down a depositwhich can be handy if you’re looking for car finance in a debt plan. But if you can afford to, putting a deposit down when you take out a finance agreement can help to significantly reduce your monthly car payments and interest charges. The more you can put down for your deposit the lower your monthly finance payments will be.

Selling your current vehicle

If you’re looking to replace your existing car, using the money you receive from the sale as part – or all – of your new car deposit can help to reduce your monthly payments. This can be particularly beneficial if your old car has a good amount of equity and will allow you to avoid using up your savings.

Private sale

A private sale can often give you a better deal as there are no restrictions on who you can sell to. If you are planning on using this money towards your deposit, however, it’s likely there will be a timeframe where you will be without a car in order to free up these funds.

Part exchanging

Trading in your current car with the dealer you are purchasing your new car from can be the easiest option. Although you might get a better price for a private sale, you can easily swap your cars with no hassle. Remember, you can use your current vehicle as part exchange when finding a car through Red Potato!

Apply for car finance!

Step 3 – What car is right for you? >

This website is operated by Premium Plan Limited. Red Potato is a trading name of Premium Plan Limited, which is registered in England with Company No 05977118. Registered office: Kempton House, Kempton Way, PO Box 9562, Grantham, Lincolnshire, NG31 0EA. Premium Plan Limited is authorised and regulated by the Financial Conduct Authority (FRN: 742272). The Red Potato name and logo are trademarks of Totemic Limited. Premium Plan Limited is a member of the Finance & Leasing Association (FLA).