Car credit considerations!Here are some of car credit considerations that you should take into account when thinking of buying a new or used car.
Here are some of car credit considerations that you should take into account when thinking of buying a new or used car.
• Firstly decide if you are buying your vehicle from a car dealership or privately as this will affect your choices of where to obtain car credit. If buying privately then you will not be able to take advantage of hire purchase for instance.
• If buying from a dealership take into account that you could take out hire purchase where you pay for the car in monthly instalments for a set period of time; take a personal contract plan where you make regular monthly payments and then make a one off larger payment, or give the car back, at the end of a set term; or look around for a personal loan.
• If you are taking out a personal loan then instead of going to the lender on the high street you could consider searching with a specialist motoring website to compare the interest rates on loans. This could lead to you making savings by obtaining the best deal for your needs.
• If taking out hire purchase with the dealership then you pay a deposit for the car which will usually be in the region of at least 10% however you could offer to pay more which means you have to borrow less and so you will save in interest.
• If you like to change cars every couple of years then you might want to look at a personal contract plan. You will put down a deposit and then pay monthly low repayments over a period of time. Upon completion there will be a balance left owning. You could choose to give the car back and have nothing to pay, pay off the balance and the car will be yours, sell the car and pay off the balance.
• If you can find a credit card that comes with a very low interest rate or better still a 0% deal then you could use this a way of financing your purchase if you do not have to pay out many thousands of pounds. You could transfer the balance on your credit card and by shopping around for deals this could be one of the car credit considerations that should be taken into account.
Posted by Edwin Miles on