Here are some basic do’s and don’ts when considering finance.

  • Do make sure you fully understand what you are getting into. Make sure you read all the small print and ask lots of questions about things you don't understand.
  • Do make sure you know the overall cost of borrowing. Low and 'no' interest deals look very attractive, but it's the APR that matters. Look for deals with a low APR.
  • Do shop around and do your research. Don't be afraid to haggle.
  • Do make sure you ask for repayment plans without all the little 'extras' such as payment protection - these can bump up your monthly repayments a lot.
  • Do use the internet. It's a great research tool and many of the lenders are considerably cheaper than the banks.
  • Don't assume the dealer you are buying your car from is offering you the best finance deal - whatever he says! Make sure you compare his offer with others.
  • Don't assume that companies offering easy finance to all are an easy way out - even people with bad credit records. They may be reputable companies but their interest rates will be very high.
  • Don't bury your head in the sand! If you find yourself having problems making re-payments, contact the lender. They would much rather reschedule your repayments to make them easier than have you default, with all the problems that entails.

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