How to make your finance more affordable
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.
Many car finance companies don’t require you to put down a deposit, which 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.
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.
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!