3 things you should NEVER say when taking out finance

Found a new set of wheels and looking to take out car finance? Here are three things you should avoid saying when the time comes and what to do instead.

Whether you’re choosing your first car or upsizing to one fit for the whole family, buying a car can be really exciting. With 80 to 90% of new cars and an increasing number of used ones now bought on finance, it’s become the go-to option for many drivers.

However, while finance can be a great route to securing your ideal car, there’s a risk that saying the wrong thing at the wrong time could cost you dearly.

“Everything you say when buying a car signals how much you know about the process and the car you’re buying,” said Jonathan Such, motoring expert at vehicle finance provider First Response Finance. “Lenders are trained to listen closely and tailor their offers based on what you say, so make sure to do your research in advance of heading to the showroom or picking up the phone to make sure you’re as prepared as possible.”

Remember, you can buy a brand new or used car right here on Carwow. And you can also sell your car, too. We’re here to help you through every step of your car-changing journey.

To help you secure the right finance deal, here are three things you should never say when applying for finance:

1) “I want my monthly payments to be low as possible”

You may think this will save you money in the long run, but saying this shows the lenders that you’re open to stretching payments over a longer period of time. This, in turn, means you’ll accrue more interest in the long run.

If you’re looking to get your bad credit history back on track, paying over a longer period may be a helpful option for you. This all comes down to your personal circumstances.

Whether you have good or bad credit, make sure to share the total budget you’re comfortable paying upfront, rather than focusing solely on the monthly payment figure you are willing to take on.

2) “I don’t really understand how finance works”

They say honesty is the best policy, but in the world of car finance this may leave you vulnerable. Admitting that you’re unfamiliar with the finance process can lead to some salespeople thinking they can upsell extras or suggest unfavourable deals.

To tackle this, do plenty of research beforehand and only share necessary information with dealers – never let your personal feelings get in the way.

Showcasing your knowledge can also help. You can do this by asking specific questions such as whether an agreement is a hire purchase or a PCP deal.

3) “I’ve already fallen in love with the car”

It’s easy to get carried away when you’re buying a new car, but be sure to curb your enthusiasm as showing too much excitement and emotional attachment to a certain car can actually put you at a disadvantage.

When a dealer knows you’re emotionally invested, they may skip out on offering you a better value alternative or even use your enthusiasm to sell you additional add-ons that you don’t really want or need.

To avoid falling into this trap, play it cool as much as possible. Even if you go to the dealership with a clear idea of what you want, make sure to browse a selection of models to compare and contrast. Not only will this help you confirm if your initial pick is actually right for you, it will also show dealers that you’re level-headed and logical.

Here are some key things to remember: be as open and honest as possible, keep a clear mind, and don’t be afraid to walk away if something doesn’t feel right.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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