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Low cost car finance – Different types to consider.

There are different types of low cost car finance to consider when you are buying a new or used vehicle. You would have to compare them and weigh up the good and bad points of each before jumping into taking out any type of borrowing. It could save you a great deal of money if you simply read the small print of any loan you are considering taking out, as this would tell you how much you pay each month and the total cost of the loan with the interest added on. This means that there will be no nas

There are different types of low cost car finance to consider when you are buying a new or used vehicle. You would have to compare them and weigh up the good and bad points of each before jumping into taking out any type of borrowing. It could save you a great deal of money if you simply read the small print of any loan you are considering taking out, as this would tell you how much you pay each month and the total cost of the loan with the interest added on. This means that there will be no nasty surprises in store.


One of the ways that you may be able to obtain low cost car finance is by taking out a hire purchase agreement with the salesmen at the dealership. This could save you money on the monthly repayments for the loan as you would be asked to put down a deposit on the vehicle. Of course the larger the deposit the more savings you could make on the monthly instalments. The downside to financing your purchase this way is that you not own the vehicle. The lender would and so if you should get into difficulty during the repayments the car could be taken back and you would lose any money already paid.


Along with this option you could also consider taking out a personal loan and then walk into the sale with cash in your pocket. This could give you a bargaining position and you may get something knocked off the cost of the vehicle.


A personal loan would also be needed if you are buying second hand with a private buyer. There are specialist websites where you can compare car loans and this could be the ideal way when looking to take out a great deal on a car loan. Of course one of the main factors that will be taken into account when applying for a loan is your credit status. If you have a perfect credit rating then you will be offered some of the most attractive rates of interest. If yours is bad then you could have to pay over the odds or have to take out a bad credit loan.


If you want to make a small purchase say when buying second hand then you could take an unsecured loan. The unsecured loan allows you to borrow less than a secured one would but you would not have to secure anything against the loan. If you wish to borrow a large amount of money then you might have to go for the secured loan as your means of low cost car finance. The secured loan repayments could perhaps be spread out over a much longer term then the unsecured but of course this would mean that you are paying more interest so the total cost of the vehicle would be more.

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