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Tips for Car Credit

Here are some of many top tips for car credit that could help you to make the right choice in getting the best deal for your circumstances.

Here are some of many top tips for car credit that could help you to make the right choice in getting the best deal for your circumstances.


•    If you are buying a car privately then you could look online with a specialist motoring website to find the best deal for your circumstances for a personal loan. You could compare the interest rates which could lead to you saving a great deal of money.


•    You might want to consider taking on a 0% credit card and using this to make the purchase if you are buying a car that is not going to break the bank, such as a used car.


•    Before you go out and look for your loan or credit card ensure that you have checked your credit rating. Your credit file is one of the first things that all lenders will take into account when deciding whether to approve your application or not. It will also go towards setting the interest rate so the better the rating, in most cases the better deal you will get and the more you might save.


•    If you take out a personal loan then you will have cash in hand to walk into the sale with and this could give you bargaining power so you could get something knocked off the cost.


•    You will own the car and so be able to sell it at any time even if you still owed on the loan. However you will of course still have to pay off the loan or keep the repayments going.


•    Should you choose to take the hire purchase deal offered by the dealership then you could pay more by way of deposit. By doing so you will have less to borrow and this could work out in your favour.


•    Remember that if taking the hire purchase agreement with the dealership you will not own the car until the very final payment on the agreement had been made.


•    You might consider a personal contract plan. This means you pay a deposit and then pay small monthly repayments over a term. At the end of the term there will be an outstanding balance which you could pay off and keep the car, choose to sell the car to pay this off or give the car back and pay nothing more.


These are just a few tips for car credit and you can find more online.

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Back to July 2009

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