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Searching for cheap car loans

Even before you go on your search for a new or used vehicle you could give some thought as to how you are going to finance the car purchase. If you are buying a second hand model from a private seller then of course you will have to have cash in hand to make the sale. If you are buying a brand new model straight out of the showroom then you have more options. You could choose between taking the hire purchase loan offered by the dealer or you could search with a specialist website and compare che

Even before you go on your search for a new or used vehicle you could give some thought as to how you are going to finance the car purchase. If you are buying a second hand model from a private seller then of course you will have to have cash in hand to make the sale. If you are buying a brand new model straight out of the showroom then you have more options. You could choose between taking the hire purchase loan offered by the dealer or you could search with a specialist website and compare cheap car loans through them.


If you have got a good deal of a brand new vehicle in the showroom then you may think that the cheapest way of buying that vehicle is by taking hire purchase offered in the showroom. The salesmen will almost certainly want you to go through them for the loan. However it is quite possible that you could get a far better deal by looking around. If you are taking hire purchase then you will have to bear in mind that you will not own the vehicle until you had made the very last payment on the loan. Until then the car belongs to the company who had put up the money for the vehicle. Therefore if you fail to keep up with the agreement you could lose the vehicle. You will also not be able to sell the car to anyone until the last payment had been made. However the monthly repayments for the loan could be cheaper as you will have paid a deposit on the vehicle.


If you decide that might be able to get far cheaper car loans if you take out the loan before going into the deal then you will have some bargaining power that may get you something knocked off the price of the vehicle. If the car is a second hand purchase then you might be able to get a good deal on an unsecured loan. However if you want to purchase a top of the range brand new vehicle then you might have to go for the secured loan. This type of loan will allow you to borrow more than the unsecured and you may be able to spread out your monthly repayments over a longer period of time.


The downside to the secured loan is that you will need to put something of value up against the amount you are borrowing and this could mean putting up your home depending on how much you want to borrow. So when considering any type of personal loan you will have to weigh up the pros and cons of each before going ahead and taking any form of cheap car loans.

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Back to June 2009

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