How To Save Money On Car Finance

How To Save Money On Car Finance

Daniel Hall 21/04/2022
How To Save Money On Car Finance

Most people will buy a new car on finance or with a loan, but the rates you pay every month can depend on a number of factors.

From negotiating and buying at the right time, here are the best tips to save money on car finance. 


Buy At The Right Time

Car dealers have targets that they will need to meet each quarter and buying a new car closer to the end of this target is when they are going to be more likely to slash the prices and offer a better deal. 

Based on quarterly sales, the best times to buy are around the end of March, June, September, and December. Not only can the prices be cheaper, but they might also offer large deposit contributions on their models.

For the same reason, you should try to avoid the busier times of the month of the year, such as in the middle of summer when people are looking for convertibles or looking to buy cars as rewards for their children’s exam results. 

Instead, you may have better luck if you shop during the middle of a snowy winter or at quieter times of the year when bargains from car dealers are going to be easier to find. 

Equally, try to avoid busy times of the month or year such as peak summer when people are looking for convertibles or want to buy cars to reward their children’s exam results.

Choose The Spec Of The Vehicle

There are various specifications on a standard vehicle that can make them more expensive, and opting for the specifications below can make your car finance a lot cheaper. This includes:

  • Smaller engines

  • Petrol over diesel cars

  • Manual over automatic

  • Hybrids over regular

  • Lower CO2 emissions

Buy Pre-Reg Cars of Those Used For Test-Driving and Showrooms

Pre-reg cars can come with a discount of up to 70%, since these are vehicles purchased up to six months before by the car dealership to hit a certain target. 

As these cars have technically already had an owner, they count as a used car, despite being completely new. Better yet, the car dealer has already hit their sales target, so you can push harder to get a great bargain on these cars. To find out more about this option, you can just ask the dealer for availability. 

Like the cars that are used for test driving and in showrooms, these are brand new, but cheaper because they aren’t ‘out of the box’. The dealers will be looking to move these, so you’re in a good position to negotiate hard on price. 

Make A Higher Deposit

Like when you buy a house, putting down a higher deposit on your car, bike, or van will mean that you own more of the car and this will result in lower monthly payments for your car finance. 

Overall your car finance might not be cheaper, but if you were buying a car with no deposit, you would be paying higher monthly repayments. 

Do Part-Exchange With A Vehicle In Good Condition

If you part-exchange your current car, this can be put towards the purchase of your new car. Selling your car privately is always going to get you a better deal than selling your car to the dealership, as you are paying largely for the convenience of selling it this way. 

Ideally, to do this, your car needs to be in good condition and it could be worth fixing any small dents and scratches to avoid losing extra money on your vehicle. 

When At A Dealership, Haggle, and Negotiate

When visiting a dealership, you need to be able to turn on the negotiation skills and this includes:

  • Starting at a much lower price than the one offered

  • Rejecting the first offer

  • Not being afraid to walk away

  • Speaking to multiple staff at the dealership

  • Visiting more than one dealership

  • Bringing in offers from competitors, adverts, and magazines

Use Brokers and Price Comparison

Neobrokers Providing Education and Changing the Market

When you use an online broker, you can get access to a lot more finance options, all in one place, and the ability to search across the whole of the market can be a lot more cost-effective than going to your local dealership. 

Doing your homework is key when you make a large purchase for something like a new car or a van. Going into the dealership with a bit more insight and education can help you when it comes to negotiating and asking the right questions.

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Daniel Hall

Business Expert

Daniel Hall is an experienced digital marketer, author and world traveller. He spends a lot of his free time flipping through books and learning about a plethora of topics.

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