When most people buy a car, they’re focused on the color, the features, and the petrol mileage. They don’t usually take much time to focus on the process of financing the vehicle. In reality, the financing is one of the most important parts of buying a car. If you are in the process of financing your car, especially if your credit is less than perfect, so you will be looking for car finance with bad credit, there are some steps that you can take to minimise the amount of money that you have to pay. Here are a few tips to keep in mind when financing a new vehicle.

Shop Around Before You Start Looking

Most car buyers understand the importance of shopping around to find the best deal on a vehicle before they make a commitment. However, many people do not understand how important it is to shop around for car financing before they go to the dealership. Of course, you always have the option of trying to finance the vehicle directly with the dealership. While this is an option, it isn’t always the best approach to take. The dealership doesn’t always have the best prices on financing a vehicle.

If you will take the time to shop around with multiple lenders before you ever get to the dealership, you have a much better chance of finding the best interest rate in the area. Handle each part of the transaction separately. The dealer may try to lump the purchase, the trade-in, and the financing all into one single package. If you want to save money, you’ll break everything down into different parts. By doing this, you have a much better chance of saving money.

Watch For Extra Charges

Sometimes, when you finance your vehicle at the dealership, they’ll try to throw in extra things that you don’t really need or you may not want. For instance, they may try to throw an additional extended warranty on top of the purchase price. They might want you to pay for gap insurance or some other charge that isn’t required. While buying gap insurance can be a good idea, you need to be aware of what you’re paying for. Make sure that you read the fine print on the financing agreement so that you’ll know exactly what is included.

Crunch the Numbers

Dealers often offer the choice of getting a low interest rate or getting cash back. Take the time to crunch the numbers and see which one actually makes the most sense financially. In some cases, paying the higher rate and getting the cash back is better for you.