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Car Credit Tips

If you are buying a new or used car the chances are that you will have to find some way of financing your new purchase. There are many different ways of borrowing to pay for your car with some of them of course depending on whether you are buying from the showroom or you are making a private deal. Let’s take a look at some of the car credit tips for ways that you could get that much needed cash.

If you are buying a new or used car the chances are that you will have to find some way of financing your new purchase. There are many different ways of borrowing to pay for your car with some of them of course depending on whether you are buying from the showroom or you are making a private deal. Let’s take a look at some of the car credit tips for ways that you could get that much needed cash.


Buying new or second hand from a dealership


•    When buying this way you could consider the Hire Purchase deal that the showroom will usually offer. Hire purchase - or HP as it is known - works by you paying a deposit and then paying off the rest of the loan over a period of time. Of course when taking this choice you should consider that you will have to pay interest on the total amount you are borrowing. However some generous dealers could offer you 0% for a period of time. To benefit from this you might have to pay a large deposit so check this, also take note of what the interest will be once the 0% interest period ends.
•    Taking out a personal loan could work out cheaper if you considered searching online with a specialist website and comparing the interest rates on the loan.


Financing your purchase with a private dealer


•    If you are buying a second hand car privately then you could take out a personal loan as of course hire purchase will not be an option. Again shopping and comparing for the best deal could get you the most suitable and cheapest loan. The beauty of taking out a personal loan is that you will be able to walk into the deal with cash in hand and you could bargain to get something knocked off the price of the vehicle.
•    When taking out a personal loan one of the car credit tips you could bear in mind is that you can spread out the loan to keep the cost of the monthly repayments down. However bear in mind that the longer you take the loan over the more interest you will pay on the loan. You will also have to bear in mind that a car’s value can depreciate quite rapidly so if you took the loan out over many years you could find the vehicle was worth a lot less by the time you had paid off the money borrowed.

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Back to July 2009

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