Is Guaranteed Car Finance worth the Cost?

Shawn |

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Have you seen that advertisement for that new car you had always dreamed about? Does the advertiser also make you an offer of guaranteed car finance? If your answers to these questions are in the positive, you probably think this is a wonderful offer. It is also possible that you may have made up your mind about the offer and decided to take it on. However did you even consider that there could be unseen catches in the offer? If not, it is time you did. Let us look at what these catches are.

It is clearly understood from the advertisement that the advertiser wants to not only sell a car but is also looking to lend you the money to buy the car. Why would they be doing so? Perhaps they have noble intentions and are looking to help people. This however is a one in a million situation, which may never be advertised. The fact is that the advertiser s looking to make money on the car as well as the finance he is promising you. He surely must have an ulterior motive for giving you a deal that is too good to be true. This is particularly true when you are dealing with cheap car insurance for young drivers.

What is the price that is being asked for the car? Have you made a comparison? If not you should be doing that right away. There is always a chance that the price being offered is a competitive one. In that case you should be looking at the quality of the car. Is it a used car that needs some repair? Is it a model that is no longer in demand? No person in his right mind would offer you a top of the line model in such an offer. It would be like getting a van insurance quote when you were looking to rent a sports car.

Next on the line is the finance, which is being offered for the car. One of the first things you should take into account is the interest, which will be charged for the guaranteed car finance. In most cases these rates will be higher than what banking institutions charge. However there is every possibility that the dealer may be willing to overlook conditions that banks apply and offer you the finance. They will still hold the papers of the car you drive until you repay the outstanding amount. In these conditions you could end up paying a high rate of interest for the finance on the car.

Last but not the least, take a look at the condition the car is in. Is the dealer trying to sell you something that may not be worth the money asked for? You can do that by asking for a test run or even have the car inspected by a qualified mechanic. If you find everything in order and also manage to get a good deal on the guaranteed car finance, this will certainly be a good deal. However if you end up not taking enough precautions before purchasing the car, you may be in for a surprise that will not be worth the cost and trouble you went through. Think hard before you make a choice else you will be disappointed.