Getting around in a car is essential for your day to day life, but it comes at a price. If you’re currently financing a car, you’ll be aware of all the expenses associated with it, as well as all of the added benefits. Taking a moment to reassess your car financing situation is always a good thing as it may save you money or even help the environment if you’re looking to upgrade to an electric vehicle. With this in mind, here are five important questions to ask yourself right now if you’re currently financing a car.

  • Could I Be Eligible for a Refund?

Many motorists are subject to mis-sold car finance and never even know about it until it’s too late. You may want to look into your situation more closely and see if you’re eligible for a refund. 

As a borrower, your Black Horse PCP Claims could allow you a refund of the difference in commission between what you paid and the cheapest rate that was available when the deal was signed. Even if this occurred several years ago, it’s certainly worth looking into to see if you’re owed any money.

  • Have I Got the Bigger Picture in Mind?

Although car finance deals can seem appealing from the outside, you always need to keep the bigger picture in mind at all times too. Even if you’re paying a low monthly payment, you need to make sure that the length of the contract isn’t costing you more in the long run. A longer loan usually means a bigger payment for your car, which may not be ideal.

  • What is the Annual Percentage Rate?

Knowing the Annual Percentage Rate or APR of your car lease will give you a clear indicator of the interest you’ll pay across the span of your loan. If your APR rate isn’t good it will affect your credit score and it will mean you’re paying a lot more for a car which is gradually depreciating in value.

  • Are There Any Extras I Could Negotiate?

If you’re paying a decent monthly fee for your car, then you need to negotiate some useful extras that could be beneficial for you. Some dealers may offer you interior upgrades or a free annual service. If you don’t ask, you might not get some bonus extras added into your deal!

  • Am I Navigating Hidden Fees?

There are many hidden costs that go hand in hand with financing a car, all of which could affect your monthly payments or final fees when your contract is over. Any damage to the car, excess mileage and other issues may need to be paid for by you. Make sure you ask about these potential hidden fees before it’s time to trade in your car or make your final payment.

Hopefully, with all of these questions answered you can make a decision whether to continue with your current financing deal, or explore other options. Whether you’re seeking a claim from previously mis-sold finance, or you’re negotiating extras, there’s so much you can do to ensure you’re getting the best possible deal.