Lack of loans contributes to car industry downturn

The Society of Motor Manufacturers and Traders (SMMT) has reported a severe drop in the number of new cars being produced in the UK, as low consumer demand and the reduced availability of loans continue to stifle the industry.

The organisation reported that car production in February had fallen by a record 59%, compared with the same time last year. It said that just 59,777 cars had been produced that month.

The SMMT has been calling for help for the car loan industry. It has also called for a scheme encouraging motorists to replace their old cars.

A similar scheme proved successful in Germany, according to the BBC, with car sales increasing by 22% last month, but so far the UK Government is just `looking into` the possibility.

Finance a New Car – Tips From the Experts

Finance a New Car – Tips From the Experts
By Mike Hamel

Tip #1 – Shorter Is Better

If you have to finance a new car, shorter is better. As Peter Valdes-Dapena of CNNMoney points out,

“There are serious downsides to this approach, though. Besides paying thousands more in interest, buyers taking out long car loans are more likely to find themselves in a financial bind if they need a new car again in just a few years. That could happen because of an accident or simply because a car owner is tempted by a newer model.”

One way to avoid this potential problem is to have a larger down payment so you have a smaller amount to finance on a new car loan. Another safeguard is to take the shortest loan term for which you can handle the monthly payments.

Tip #2 – Financing First

According to the editors at Edmumds.com, if you arrange financing before you go to the dealership, you are in a much stronger position to negotiate. This important step presents a number of advantages because it keeps negotiations simple in the dealership and allows you to shop competitive interest rates ahead of time. It also removes dependency on dealership financing and encourages you to stick to your budgeted amount.

Tip #3 – Comparison Shop

Shop around to get the best possible price on your new car. Check newspaper ads, dealer showrooms, and the Internet. Plan to negotiate as most dealers are willing to give a little from their profit margin—usually between 10 and 20 percent—to make the sale. If you don’t find what you want at the neighborhood dealerships, consider ordering your new car. There are several reputable car-buying services online.

Learn more about how to Finance a New Car and get a complimentary loan quote at Auto Loans In Seconds. It is a no-risk way to discover how much you could be pre-qualified to borrow toward a new car.

Mike Hamel is the author of several books and online articles about auto financing. His material is featured on sites like Auto Loans In Seconds.

Article Source: http://EzineArticles.com/?expert=Mike_Hamel
http://EzineArticles.com/?Finance-a-New-Car—Tips-From-the-Experts&id=754198