What is the best car loan finance option?The best car loan finance option for you is as individual as you are – there is no one ‘best’ car loan. However, there are ways that you can find a suitable car loan.
The best car loan finance option for you is as individual as you are – there is no one ‘best’ car loan. However, there are ways that you can find a suitable car loan.
One of the things to take into account is where you are buying your vehicle. If you want to look around dealerships then you have the choice of taking out a personal loan and have money in your hand when you go to the dealership or you might want to take the finance option offered by the dealer. If buying your car through a private sale of course you need to have cash, whether from your savings or via arranged finance.
Along with buying a car privately or with a dealer, you may also want to give some thought to buying a used vehicle online with a specialist motoring website. Often you are able to browse through hundreds of models of quality used cars online and you may be able to obtain the best car loan finance deal through them.
If you intend to buy a used vehicle in a dealership and the car is relatively cheap, you may want to consider buying the vehicle on a credit card that comes with 0% interest for a period. As long as you are able to pay off the balance within this period of time this may be a cheap way of buying a used vehicle.
When looking for used or new cars in a dealership you may want to find a loan and then walk into the showroom s a cash buyer. Often if you pay cash for a vehicle you may be to able to get something knocked off the cost of the car.
Whether you take hire purchase or a personal loan, you are typically able to spread out the cost of borrowing usually over 1 to 4 years. While the longer period means smaller monthly repayments, in most cases you will pay more interest, so compromise between the two.
If you think the best car loan finance option for you is hire purchase then you need to bear in mind that you usually have to pay a deposit on the vehicle. If money is tight then you may wish to find a loan instead. A deposit may work to your advantage however if you do have a little money spare. This is because you do not have to borrow as much which of course means that you have less interest to pay back on the borrowing.
Posted by Edwin Miles on