How to Save Money on Car Finance

Consider buying a used or nearly new car

One of the easiest ways to save money on car finance is by buying a used or nearly new car instead of a new car. New cars can be expensive and can lose their value quickly. Buying a used or nearly new car can be a smart choice if you're looking to save money. Doing so can also help you get a better deal on car finance as the car won't be worth as much, and therefore, the amount you borrow will be smaller too.

Refinance your car loan

If you already have a car finance deal, you may want to consider refinancing it. Refinancing your car finance deal can help you get a better deal, especially if your financial situation has changed since you first took out the loan. Keep in mind that refinancing is not always the way to go, but it's a viable option to consider if you're looking to save money.

Put down a larger upfront deposit

Putting down a larger deposit upfront can help you save money on car finance. By doing so, you can lower your monthly loan repayments or pick a shorter loan term, reducing the amount of interest you have to pay over the loan period. Consider your financial situation carefully before committing to a larger upfront deposit, though.

Improve your credit rating

Your credit rating can have a big impact on the interest rate you receive on your car finance loan. Improving your credit rating over time can help you secure a better rate, ultimately saving you money over the long run. There are several ways to boost your credit rating, such as paying your bills on time, reducing your credit card balances, and disputing any errors on your report.