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Before you apply for a loan, check out what your car is going to cost - by looking in newspaper car columns and magazines, also check out cars on the internet.
| RAC Car Loans |
| RAC Motor Insurance |
| Buying a Car |
How Much? 
Work out how much you can afford in monthly repayments and take into account:
- Registration.
- Regular maintenance.
- Insurance.
- Petrol.
- Replacement of tyres.
Shop Around
Do not just compare interest rates. Look at the total cost of each loan including:
- Loan establishment fees.
- Ongoing fees.
- Penalties for paying your contract out earlier.
- Lump sum payments at the end of the loan (balloon payments).
Arranging Finance
It is best to arrange the finance before you go car shopping, because:
- The money will be available when you need it.
- A pre-approved loan can give you cash - in-hand bargaining power.
- The choice of who to arrange finance with is yours - instead of having to make a hasty decision when buying the vehicle.
