Cheap car finance loans might look tempting, but taking a little time to compare the total cost could save you money.
Everyone’s in a hurry these days. From getting the kids out of the door to answering that email marked “urgent”, everything feels like it’s moving at 100mph.
Buying a car can be exactly the same.
You spot one you like, take it for a quick spin and suddenly you’ve gone from 0 to talking monthly payments in about five minutes flat.
This is one occasion were taking your time (within reason) really does make sense.
The finance offered by a dealership can be convenient, but convenient doesn’t automatically mean cheapest.
Before agreeing to anything, have a look at the total amount you’ll repay and compare it with other options. You might find that what looks like one of those cheap car finance loans isn’t quite as cheap once you get into the figures.
Five reasons a Northern Community Bank loan could put you in the driving seat
- You can shop around. Sorting the car and finance in one place is convenient, but it can also make it harder to compare properly. With a Northern Community Bank car loan, you can arrange the borrowing separately and then shop around for the best deal on the car itself.
- The car is yours. Northern Community Bank offers car loans of up to £15,000, meaning you can buy a new or used car outright. Once you’ve bought it, it’s yours to keep, sell, upgrade or modify whenever you like.
- No balloon payment waiting. Some finance deals keep monthly payments down by leaving a large final payment at the end. With a Northern Community Bank car loan, there’s no balloon payment waiting around the corner. There are no mileage limits or damage charges either, because you own the car.
- You know the rate you’re paying. Dealer finance is often advertised using a Representative APR, which means not everybody will necessarily get the headline rate. With Northern Community Bank, the rate you’re quoted is the rate you pay. So, when you compare cheap car finance loans, make sure you’re looking at the actual rate and total amount repayable rather than just the number in the advert.
- Repayments can work around you. Car finance packages can sometimes feel a bit one-size-fits-all. Northern Community Bank takes a more personal approach, with loan decisions made by real people and repayment options based around your circumstances
We’ve been on this journey for four decades
Northern Community Bank has been helping people across our communities borrow and save for around four decades now.
Cars might have changed quite a bit in that time, but the idea behind what we do hasn’t.
We’re a not-for-profit community bank, which means there are no outside shareholders taking a cut. Instead, our focus is on supporting the people who bank with us and keeping money working within the communities we serve.
That relationship doesn’t end when you drive away in your new car either. Through Save as You Borrow, you can gradually build up savings alongside your repayments, helping to leave you in a stronger position once the loan is finished.
Eligible savings and loans can also include a free bereavement fund benefit, subject to scheme rules, while account holders may share in the success of the community bank when it performs well.
So before accepting a dealership offer, take a little time to compare.
Cheap car finance loans can look attractive, but the quickest deal isn’t always the one that leaves you best off.
Sometimes it pays to take your foot off the accelerator before you sign.
