First set the limit: What is the maximum you want to spend on a car? Then think about how best to choose the rates. In principle, you should find a good balance between the installment amount and the duration of the repayment. The rates should not be too high to have buffers for financial emergencies. But don’t choose the duration too long. Otherwise you will have to pay off a car at some point that you can no longer drive.
To ensure that you are covered in the event of unemployment or other unforeseen events, you can also take out residual debt insurance. In the event of damage, this will repay your credit installments.
How do I properly insure the vehicle?
A car is an important commodity. Many people rely on a car to get to work every day. Make absolutely sure that your car is adequately insured – depending on the age of the vehicle, the mileage, etc. Otherwise you risk serious damage that you actually need a new car but cannot afford one because you still have to pay off the old one.
Who is insured and can drive the car?
Car insurance is cheapest if only one driver is specified. If the spouse is also insured, this is usually not significant. If the number of people continues to increase or is even stated as unlimited, the costs can rise sharply. The policy is often significantly more expensive, especially if novice drivers are also insured. Here it is worth comparing offers and checking which variant is suitable for you and is the cheapest.
When is a good time to buy a car?
You should also consider the season when buying a car. In winter, many people switch to the car, then the number of visitors in car dealerships increases. In summer, car dealers are often quieter and some have special offers during this time. It also depends on whether you want to buy a new car or a convertible, for example, which is the cheapest time to visit the dealer.
What is the advantage of financing through a car dealer?
You can often expect very good conditions if you finance your car directly from the dealer. It also saves you having to go to the bank separately. You simply apply for the loan through the dealer, who in turn works with a bank. This is how it works for car dealers who cooperate with Lite Lender.