What to consider before applying for a car loan
How much you can afford to borrow.
Do this before you start looking for a loan or searching for your dream car. Go through your finances, look at your income and outgoings and check the maximum amount you can afford in monthly repayments.
Work out what terms you want from the loan.
You should also consider the length of the loan term before you start searching around for a lender or a car. The longer the repayment term, the lower the repayments, but the more the loan will cost you overall in interest payments.
Extra costs.
You need to think about additional costs associated with buying a new car and determine whether this is something you want to work into the car loan or whether you want to pay for this separately. This includes the cost of insurance, which can be quite high – particularly for younger drivers with less experience.