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Car credit – where to find it?

Considering buying a new car but do not have the funds in the bank? Then you need to consider one of the options for car credit, but where do you find it? Finding car credit is not that hard actually but getting the best deal for your situation could be a different thing. So what are the choices of car finance and where could you get finance from?

Considering buying a new car but do not have the funds in the bank? Then you need to consider one of the options for car credit, but where do you find it? Finding car credit is not that hard actually but getting the best deal for your situation could be a different thing. So what are the choices of car finance and where could you get finance from?


•    You could choose between independent finance which means looking for credit yourself
•    You could choose to take the finance that is offered by the dealership


Okay, so these are the two choices of where to find your car finance. Of course if buying privately you will have to choose to independently finance your vehicle and if you are buying second hand or brand new from a dealership you could choose to take credit independently or through the dealership.
Where you might go for independent finance


There are many ways that you could take out independent finance and these are outlined below.
•    Borrow on a credit card – this might be suitable option if you have an excellent credit rating and you wanted to purchase a vehicle that was low in price. If you found a card with a 0% deal attached to it then you could make savings on the interest providing you could afford to pay off the balance each month.


•    Take out a personal loan – you could choose to shop around with a specialist motoring website online that could help you to find a suitable car loan based on your needs. If you get a good interest rate this could work out great as you will have cash in hand which could be a bargaining tool. If you wanted you could sell the car as long as you continued paying off the loan or used the money from the sale to pay it off.


The dealership finance options


•    You could take out the HP (otherwise known as a hire purchase agreement) offered by the dealership where you are buying your car. You will not have to shop around for the finance yourself but you will have to pay a deposit on the vehicle. You could keep down the amount borrowed by paying a larger deposit and you can spread the monthly repayments out. If you opt to buy via hire purchase you do have to take into account that the car will not be yours until the last payment has been made, so you could not sell it until the term of the agreement had been reached.
•    You might take out a personal contract plan (PCP) as your form of car credit by paying a deposit and small monthly instalments over a period of time. There will be a balance left upon the term and you then have two choices - Give the car back or pay the balance and keep the car.

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