5 min read

Why securing your own car finance deal could save you money

Hannah Salih
30 April 2018

Getting car finance through your dealer as a 'one-stop shop' solution may be convenient but it could be leaving you out of pocket

The high cost of purchasing a new car outright means that most people end up using some kind of finance to fund their car.

But what you might not know is that you also have the choice of securing your finance through your car dealer or arranging it yourself. But which route should you go down? Let's walk through the options.

Reasons to arrange your own car finance

Sorting your own finance can be a simple way to get a better deal and even a better car too.

The thought of arranging your own finance can seem daunting at first. Luckily, in reality, it's much easier than it sounds. With various car finance providers online, you can apply in minutes directly through ClearScore. Once approved, you then have a huge variety of dealers and cars to choose from.

1. A large choice of financing options

If you go through your car dealership, your financing choices are limited to what they offer you. In many cases, the salespeople will try to push the option that offers them the most commission. But if you secure your financing separately, you open yourself up to a much wider car finance market and a huge range of offers.

2. Time and flexibility to decide

When you're sitting in the showroom with a contract already in front of you, it can be hard to take the time to consider your decision. When making such an expensive purchase, you shouldn’t feel pressured to sign a contract. By arranging your own finance you have the time and space to shop around and consider all your options in detail before committing.

3. You can buy from a wide range of dealerships

Once you arrange your finance, you are then free to choose any car from a huge range of reputable dealers. With more cars and dealerships to choose from, you're more likely to get the car you want at a good price.

By sorting your finance first, your car choice is not based on which dealer can offer you the best financing deal.

4. You can find and apply for the best option for you and your credit score

As a ClearScore user your car finances offers are recommended according to what is the most suitable option for you, so you can be sure you're getting a good deal.

You can see your eligibility before applying to ensure that any application you make isn’t rejected, which can hurt your credit score.

And while salespeople often factor in their own commissions when choosing what car and finance plan to recommend, ClearScore never factors in commission in your recommendations.

Find car finance options tailored to you in your ClearScore

Reasons to secure financing through your dealer

1. Efficiency and convenience

Taking up a finance option from your dealer is quick and convenient, saving you the time and effort that would go into arranging your own finance.

2. Some dealerships can offer more competitive terms

If you're buying straight from a brand's own dealership, they are often much more interested in getting their new wheels off the lot as quickly as possible than in making a profit through finance.

This means they regularly offer 0% interest deals as an incentive in order to help sell their cars. In situations like this, it can be cheaper (and more convenient) to choose financing from your dealer.

But in some cases, while you might be told that the interest rate is 0% the reality is that the saving is concealed within the price of the car.

The final word

The thought of driving your new motor out of the dealership for the first time is really exciting, so it’s understandable that we often plump for the more convenient choice, even if it is more expensive. But, in the case of car finance, it can literally pay to have a little more patience and separate the steps of financing from choosing your new car.

Find car finance options tailored to you in your ClearScore

In a nutshell:
  • Looking for your own financing gives you a large choice of options, dealerships and cars. You also have time when it comes to making a decision, without the pressure of having a contract and pen in front of you.

  • By looking for your own financing, you can get a much better price. And by using ClearScore, you can target the best deals on the market from over 100,000 cars that match your criteria.

  • Going through your dealer for finance is a “one-stop shop” solution, which is fast and convenient.

  • For brand-specific dealerships, you might get offered an attractive financing deal. This is because their main business is car sales, not financing commissions. Just beware that a commission might be concealed as part of the car price.

by Hannah Salih

Hannah reads all the finance info on the web so you don't have to. She also spends a disproportionate amount of time responding to Moose and Flearoy's fan mail.

ClearScore exists to make your finances simple.
We offer a free service where you can handle everything to do with credit in one place. In your ClearScore account, you can see your credit score and the full details of your credit report. Your credit cards, mortgages, mobile phone contracts, loans, overdrafts and utilities all on the record. Our goal is to make ClearScore as simple, calm and straightforward as possible. Money is stressful enough.