Car finance considerationsThe options if you are looking for car finance can be quite wide. The key to getting the most suitable motor finance for you is to match the finance options to what best suits your own individual circumstances.
The options if you are looking for car finance can be quite wide. The key to getting the most suitable motor finance for you is to match the finance options to what best suits your own individual circumstances.
For example, if you are looking for a low cost car and are buying it from a dealership, you may want to put it on a credit card that has a 0% rate of interest for a set period of time. The aim of course, would be to pay the vehicle off within the 0% interest free period, thereby meaning that you will not have to pay out anything in interest charges.
Of course, you cannot buy a vehicle from a private seller with your credit card. So what may your options be then?
Among the potentially but not always more expensive options are buying your vehicle privately via an overdraft. Even if your overdraft is authorised, you could find that unless you pay it off very quickly, you will rack up a fair amount of interest charges. You will also normally be charged a fee for being overdrawn, on top of this too.
Another car finance option could be via a personal loan. While this will attract interest charges, you can shop around for the most suitable car loan for you and see who is offering the most attractive interest rates.
Using an online car finance specialist may be a good place to look as these kinds of websites often specialise in the type of loan you are looking for and may even be able to help if you have a poor credit history.
Online car loan brokers may also be able access special internet only deals which may come with a discount on the interest charged
Another way of possibly securing car finance is via a car dealership scheme. The most common one of these is Hire Purchase - or HP – where you pay for the vehicle on a monthly basis. At the end of the period, you take full ownership of the car. If you stop making payments before the HP period ends, you have to give the car back, as typically, it is not legally yours.
So, if you are looking for car finance, there are a number of solutions for you. One final note - no matter what option you chose, do make sure that you will comfortably be able to afford any repayments. There is no point having a nice car if you are struggling to service the debt on it. So always stick to your budget, no matter how tempted you by that sporty little number!
Posted by Edwin Miles on