If you need to obtain bank loan to fund the purchase of the car, you should be aware that the financing offered by the dealer is often not the best deal you can get. If you shop around for car loans you may get financing at a much better rate. You should compare the annul percentage rate (APR) as well as the length of the loan and the amount of monthly repayments. Always look at the total amount repayable and compare this to the price of the car to see the cost of the finance.
Sometimes, dealers will offer you a very good financing rate on specific models that qualify and even they offer you one year insurance free. You can see this trend of offers during the Holy Month of Ramadan, It may not be possible to negotiate on the price of these models and you should check to see if this is cheaper than buying another model that can be negotiated.
Make sure you have a copy of the contract and before you leave the lot, evaluate whether the monthly repayment terms in it are affordable. You should also check your existing insurance policies as you may be covered already under another policy.
If you are considering a trade in, bring it up only after you have already negotiated the best possible price for the car you want. You should also research the value of your old car so that you know what it is worth. This information will help you see what the dealer is effectively offering you for your old car and if it is a fair price.
If you are considering a service contract you should be clear on what it offers. They have many exemptions and you will already have some cover from the manufacturer’s warranty which is included in the cost of the car. You should certainly ask the following questions:
– What does it offer over and above the warranty?
– What repairs are covered?
– Is routine maintenance recovered?
– Will they pay for parts, labor or both?
– Who performs the work?
– When does starts and ends?