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Car loans – getting the right deal

A lot of people wouldn’t dream of buying a car without looking for the right deal to suit their pockets. But, funnily enough, all of us won’t necessarily carry this principle on when it comes to looking at car loans. We may, for example, simply take the first deal we come across. This may, of course, not be a bad deal, but it may not be the best deal we could get.

A lot of people wouldn’t dream of buying a car without looking for the right deal to suit their pockets. But, funnily enough, all of us won’t necessarily carry this principle on when it comes to looking at car loans. We may, for example, simply take the first deal we come across. This may, of course, not be a bad deal, but it may not be the best deal we could get.



It really may suit your finances better to look at your car loans options as a whole before you come to a decision. Whilst using dealership finance or a standard personal loan to buy a car may suit some people, these may not be the most cost effective choices for others. The only way you’ll be able to work out the best deals is to look around for them.



One of the most important things you can do in this situation before you start applying for finance is to decide how you want to raise the money to buy your car. You have a fair few choices to compare. For example, you could simply take out a personal loan. This allows you to:



•    Buy your car outright
•    Make regular monthly capital/interest payments to your lender for the time that the loan is due to last

A popular alternative that many people also opt for when buying a car is a hire purchase agreement. This allows you to:

•    Make regular monthly repayments with ownership of the car going to you at the end of the agreement (although you can, of course, use it from the word go).
•    Often set up your car loans deal quicker and with less hassle than may come with a personal loan.

Finally, car leasing contracts may be your financing method of choice. This kind of deal allows you to:

•    Pay for your car for a specific period of time with less long-term commitment.
•    Change your car, give it back or buy it when your contract finishes.



Hire purchasing and leasing agreements are specialist methods of buying cars. Car loans may be given by a specialist car financing firm or you may choose to simply opt for a general personal loan if you prefer. Many people do find it useful to talk to a specialist car financing company in the first instance. This may well simply help you see all the options available to you and get some specialist advice and help.

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