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Car finance – getting a good deal

With so many car finance options to choose from, how do you know that you are getting the right deal for you? Probably the most important thing to do is to do your homework! By that we mean research your options. For example, are you looking at forecourt finance; a personal loan; a car loan; or something else?

With so many car finance options to choose from, how do you know that you are getting the right deal for you? Probably the most important thing to do is to do your homework! By that we mean research your options. For example, are you looking at forecourt finance; a personal loan; a car loan; or something else?


So how do you find the best car finance deal for you?


First of all, decide what sort of car credit you want. For example:
•    Finance forecourt may suit you if you want the ease of getting a vehicle and a car finance package all rolled in together. However, note that you may end up paying through the nose for this kind of finance. 
•    You may want to use a dealer’s hire purchase scheme or personal contract purchase plan. These do differ, but basically you pay the dealer a set amount every month in order to repay the borrowing. With the former, the car is yours once all the repayments have been made. With the latter, at the end of the repayment period, you either give the car back to the dealer or pay a lump sum in order to buy it out completely.
•    You may want to be in the position of being a ‘cash buyer’ when getting a new or used car from a dealer, as this can give you give you greater bargaining power. It also means that the finance is not tied to the car, so that you own the car outright. A car loan is a specific type of personal loan that can have added benefits above that of a normal loan, such as maybe payment holidays. This could provide you with a cash sum with which to buy a car - though you will have to pay it back of course!
Once you have decided what sort of car finance best suits you, then you need to find the deal that is most cost effective. This can be done in a variety of ways:
•    By using legwork – you can visit local car dealers and banks and building societies etc to see who is offering what. This can be very time consuming. Also, you could well get ‘caught up’ in the moment when a car dealer offers you just the vehicle you are looking for and you act on impulse.
•    By scanning the newspapers, listening to the radio and watching TV. However, this will not give you a true picture of all the options that are available to you.
•    By taking advantage of the internet, in particular specific specialist motoring and car finance websites. This has probably got to be the easiest way of doing your research. And because the web is such a huge resource you can access lots of pertinent information, quickly and easily. Some offer you the ability to buy a new car and arrange finance, all online. And because there are less overheads associated with buying on the web, you can often make quite hefty savings.


Once you have all the information that you need to hand, you can then make an educated choice as to the best car finance option for you.

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