Archive for the ‘Financing’ Category

If you are planning to get yourself a new car and want to save money at the same time, there are a few options available that will save you paying the whole amount up front as one lump sum.

One of these options is taking out a personal loan to pay for your car. In doing so, you will be able to pay for the amount of the car in manageable payments rather than one large one. Most of the time, the unsecured personal loan is the preferred type of personal loan that people take out when buying a car, but this will depend on the amount you wish to borrow. If you are looking at borrowing a large amount for a car, maybe around £30,000+ then a secured personal loan could be available to you providing you have something as collateral for you to borrow against.

Contract hire or leasing is becoming a much popular way for people to purchase a car and these deals can be done through main deals or contract hire and leasing specific companies. In simple terms, this basically means that you pay a monthly amount for your car for a set period of time, say two years, and then at the end of the two years you could give the car back or pay a lump some at the end to pay the remainder of the outstanding finance and own the vehicle out right. Most people choose to give the car back after the set period of time and then get a new car and repeat the process. Although you actually never own your car out right there are some good benefits of doing this. To begin with you can replace your car every couple of years and you will never have the hassle of having to sell your old one. Also, you will not have the depreciation issues that come with buying a brand new car. There are many different versions of contract hire and leasing therefore it is recommended that you speak with a specialist company to get all of the details that you need.

Believe it or not in some cases you can buy a car on a credit card. This may be an option for you if you have a special interest free period on your card and can benefit financially by doing so. Obviously you need to be disciplined to make sure that you pay the amount off on a monthly basis, however this can be an option to look at.

Obviously, if you can afford it, cash is the best way to finance your car purchase, due to the fact that you will not be paying any interest. The other advantage is that most of the time you will be able to negotiate better deals if you are paying cash. Whichever way you decide to finance your car the most important thing is to seek the correct financial advice in advance and only spend what you can actually afford.