What is the Cheapest Way to Finance a Used Car in Ireland?
Are you planning to buy a used car? This is a brilliant idea to save money on the purchase cost. However, you might want to turn it into bigger savings by choosing a financing option at the lowest rates.
Saving on interest is the main goal for many aspiring car buyers. Finding the cheapest option is not easy, as it depends on your requirements and affordability. Instead of focusing on random offers that claim to be the lowest, calculate and compare on your own.
It might happen that you want to borrow money with a low credit score. In that case, the definition of the lowest rates might change. However, you do not have to struggle to get a used car loan with bad credit in Ireland.
Interestingly, getting cheaper rates is possible even when your credit scores are not favourable. Your research will be important. At the same time, you must keep a few things in mind that are going to be discussed in this blog.
How to find the most affordable financing option to buy a used car?
External funds let you arrange money that you need additionally. Then, you will not have to postpone the buying process further. You can get the car just when you want.
Moreover, loans can be an effective way to spread the cost of owning a car. You can go further to make the process cheaper by trying to get a suitable car loan interest rate.
There are ways you can downsize the cost of borrowing.
- Pay with cash
If you do not want to get involved in the chaos of interest rates, cash can be your safest companion. However, this means you will have to save the entire amount of the purchase price.
Then, you will not have to borrow money from outside. This means that you will be free from the worries of interest rates. You will pay everything outright, and nothing will be outstanding.
When there is nothing borrowed, you do not have to pay more. You can become a car owner the right way.
- Borrow from a direct lender
If the above option seems unachievable, you must work with a direct lender. Their approach will be completely different from traditional lenders. The best thing is that you can pre-qualify with these alternative lenders.
For the lowest car loan rates, you must receive a pre-approved offer from multiple lenders. Then, you can compare these offers and find a suitable rate.
Now, if you have decided to continue with these lenders, you must pay attention to the following steps. This will help you get loans at better rates.
- Optimise your credit scores
You must know that it is easy to get loans for a car at fair rates with good credit scores. This is because the risk factor is much lower for the lender. For this reason, they do not hesitate to reduce the interest rates.
Now, if you have questionable credit scores, you can get loans, but not at reasonable rates. You must enhance your credit scores to get the best car loan rates.
Pay bills within the given timeframe. Pay attention to debts which should be disbursed on time and without further delay. This will help in reducing the outstanding debt.
Keep checking your credit reports, as they might have some silly mistakes to be rectified. These errors can lower your credit scores. You must not overlook them, as correcting them can help in improving your credit scores.
Always try to keep the credit utilisation ratio low. This will leave a positive impression of your financial situation. The lender can see that you are not over-dependent on external funds.
- Shop around for suitable loan rates
With direct lenders, you have the option of pre-approval. Make the most out of this opportunity to get offers from multiple lenders at the same time. As pre-qualifying with different lenders simultaneously will not impact your credit scores, you can go ahead.
This will help you collect different offers which you can compare further. Then, finding the desired used car auto loan rates will not be difficult. You can stack each offer against the other to see what they have in store for you.
- Choose shorter terms with loans
A particular loan option allows you to choose the amount from a borrowing range. In a similar way, you can select the repayment term from the offered range.
Therefore, you can opt for a slightly longer term, as it might seem suitable. This can help you in lowering the cost of monthly payments. Since the number of months has increased, it lowers the amount you have to pay every month.
However, the truth here is that you will pay more when the duration lengthens further. You will be paying interest rates for more months. Automatically, the borrowing cost will increase.
On the flip side, if you pick a shorter term, the number of months you will have to pay back loans will decrease. Then, interest cannot be charged for more months. However, monthly payments will be higher, which might not be bad if you want the cheapest car loan option.
- Make a larger down payment
This indicates that the chances of getting financing for a car purchase at cheap rates increase if you arrange a bigger deposit. This is like downsizing the risk aspect for the lender.
In return, the loan provider will be ready to offer loans at affordable rates. When you gather a bigger deposit, you need to borrow less money.
The bottom line
Getting financing for a car at the best rates is now clear to you. Then, the next step for you is to approach a responsible broker who can guide you on how to apply for a car loan with bad credit. alternatively, Givemyloan can be your broker choice, as it will bring loans on a simple process. You can complete everything online.
You do not have to stand in queue for hours. Fill out an online form that will be easily available at the lender’s website. Once you have completed the form, you can submit it online after reviewing it carefully.
The lender will process your application for pre-approval online. Then, they will get back to you in the same way via the virtual mode. After approval, you will also receive the loan money online.
Description
If you have doubts about how to secure car finance at the best rates, this blog can guide you. Read through it to find out the ways you can try to get loans at the cheapest rates.
Ava is Editor-in-Chief at Givemyloan and is known for her deep and practical approach to modern personal finance. She has written several articles covering topics like personal loans, business loans, etc. Coming from an economics and finance background, she has worked behind the scenes to curate informative content to help borrowers identify the right loan option.
Ava’s role at Givemyloan lets her combine her interest in writing with her curiosity to explore the finance realm. She likes to be updated about what is happening in the lending industry. Most importantly, she tries to instil her knowledge in her writing in the best way possible.
She is passionate about helping borrowers look beyond the general features of a loan, i.e. about the fees and other intricate details. When she is not writing, she likes to read contemporary fiction. She is on a mission to help educate people looking for loans so that they take the right route.
