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.

For the third time this year, starting from January 2010, the Ford Fiesta was still the best selling model. Last February, it had a total of 23,681 sales. One thing that people love about these cars is its sporty styling and attention to details. It also offers handling and acceleration that makes you feel like you’re driving a sporty super mini. I also like the way that the side mirrors turn inwards the moment you lock the car. And it comes with quality that justifies its price.

As of March this year, Ford Focus grabbed the second place selling 17,989 models. It is also the best seller for the years 2008 and 2009. Ford Focus has been the choice of buyers who are looking for a quality five door family hatchback. In fact, for every 20 cars that are sold in the UK one will be a Ford Focus. It was launched over ten years ago and over a million units have been sold since then, not counting the once launched globally.

Next up is the Vauxhall Astra. The all-new model was launched in December and is up to third spot as for this March holding the number of 15,326 cars sold. The latest Vauxhall Astra still offers a cutting edge design which maybe the reason for it to top the sales charts. It does pretty well for it to be able to find a place near the top of the charts with the Focus and VW Golf as its competition.

In fourth place as of the third month this year is the Vauxhall Corsa which boasts sales totaling 15,088 for this first 3 months of 2010. This car has been considered to be the choice for driving instructors. The reason for this is because of its ability as an easy to drive super mini. Their latest one is also more fun to drive and comes with a very low running cost.

Ranking fifth place is the Volkswagen Golf racking 9,976 sales as of this March. Shortly put, VW Golf is a really cool car. Despite being a little expensive, they justify their price with their solidly-built motors which perform exceptionally well while still having that element of class.

It is a legal requirement for a driver to drive in the UK with at least a Third Party Only insurance. So what exactly does the Third Party Only (TPO) insurance cover? TPO ensure that the third party involved in the accident would be protected. So if one with TPO insurance were to crash into another car then his liability to the other driver will be covered by the insurance. This is of course if the accident was proven to be the insurance holder’s fault. As its name implies, this type of insurance will not cover for the damages that the holder will sustain.

TPO will cover for any injury or even death caused to the third party. This is of course if the insurance holder is liable for the accident. Also remember that TPO does not cover for your car in the event that it will be stolen or be burnt in a fire. In this case, you might want to consider upgrading to TPO, Fire and Theft. TPO Fire and Theft is the same as the Third Party only insurance type but it covers for your car if it will be stolen or burnt due to fire.

Aside from the TPO insurance cover, you also have the option to get a Fully Comprehensive car insurance. This type of insurance is most suitable for cars pricing over £1,000. Also, cars costing over £5,000 should have this type of insurance cover. It covers the same as the TPO Fire and Theft plus the Accidental Damage. Accidental damage is damage done to the insurance holder’s vehicle. These policies also include personal accident cover, wherein bodily injuries to the driver will all be covered.

Take note though that some insurance companies will push on the TPO cover and not the Fully Comprehensive or TPO, Fire and Theft. This may be due to the car being over thirty years old or older. In this instance, it would be hard for them to replace car parts that may no longer be readily available and replacing these parts would be very expensive for the insurance company.

1. Does the car have any current problems they are aware of?
2. When was the car last serviced?
3. Does the car have a full service history with a stamped book and a receipts of any work done?
4. Does the car have an MOT and how many months left does it have to run?
5. Has the car got any outstanding warranty or does the car come with any warranty?
6. When were the tires last changed?
7. What is the reason for selling the car?
8. Has the car been involved in any accidents?
9. Is there any outstanding finance on the car?
10. Can you take it for a test drive and if not what is their reason for not allowing you?

You may also want to watch this video on what to look out for when buying a used car.

Nowadays, cars are made in a way that they will last longer than their predecessors. Considering this, it is a better idea to buy a nearly new car rather than buying a brand new one. I am talking about the cost effectiveness of course, knowing the fact that they will still last almost as long as a brand new car and the chances are they will still be covered under some sort of warranty.

Depreciation is also one thing you should watch out for. Depreciation on brand new cars today is quite high. In fact the moment your brand new car is driven out of the showroom, it won’t be that new anymore thus decreasing its value. After a mere 2 years, your brand new car that you bought with your hard earned money won’t be even worth half of its original price. There is a really huge difference between the prices of these cars. So it would be financially wise to just get yourself a nearly new car for a lower price than a brand new one. Both will depreciate, but at least you spent less money.

Considering that you will spend less, you will still have some cash left to have some additions to your car should you wish. Even after having some additions, it still may even cost less than if you brought new. All in all, we recommend that you purchase a nearly new car rather than brand new as your money will stretch much further.