Three things you should never say when taking out finance

From choosing your first car to upgrading the family motor, purchasing a new vehicle can be an exciting milestone, and with 80% to 90% of new cars and an increasing number of used vehicles now bought on finance, it's become the go-to option for many drivers.

But, while finance can be a great route to securing your dream car, saying the wrong thing at the wrong time could lead to a costly mistake. 

Everything you say when buying a car signals how much you know about the process and the vehicle you're buying. Salespeople 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.

To help consumers secure the right finance deal for them, here are the top three things you should never say when applying for finance.

1. "I just want the monthly payments as low as possible" 💰

Although you may think you're coming across smart with your budget, this statement can signal to lenders that you're open to stretching payments over a longer period of time. 

Stretching your finance agreement over more years will inevitably accrue more interest in the long run. However, if you're looking to get your bad credit history back on track, this may be a helpful option for you in the longer term. As always, it's all down to your personal circumstances. 

Regardless of 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 and whilst it is for need-to-know information and legal documents, oversharing your level of understanding of the finance process can 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. 

Arm yourself by doing plenty of research beforehand and only share necessary information with dealers, keeping personal feelings out of it. Further demonstrating that you're knowledgeable can also help, which you can do 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 this car" 🚗

When you're excited about something like buying a new car, it's easy to get carried away, but showing too much excitement and emotional attachment can 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 enter the dealership with a clear picture of what you want in mind, make sure to browse a selection of models to compare and contrast. Not only will this help you confirm if your initial idea is actually the right thing for you, it'll also show dealers that you're level-headed and logical. 

Ultimately, purchasing a car on a finance deal can be the perfect solution to obtaining your dream vehicle at a cost model that's manageable to you, but going into the process fully informed is crucial. 

The key things to remember when taking out finance are to be as open and honest as possible, to keep a clear mind, and to not be afraid to walk away if something doesn't feel right to you.