One-Stop Guide to Car Finance Options

Posted on 02 December 2014 by Tony Santos

car-finance

Image: Justin Capolongo

 

Buying a new, or used, car can be something of a complicated task when you have cash flow problems. It’s something of a catch-22 situation. You need a car to get to work to earn money. Without a car, you cannot do this. But, you don’t have the money available to pay for the car. It’s the ultimate dilemma.

Of course, without advocating getting into debt, you don’t have to have a mountain of cash to buy a car. You can seek out a wide range of different finance options that may be suited to your personal circumstances.

When it comes to buying a car on finance, there is a wealth of options. Let’s take a look at which ones may be best for you.

Car Loans: What Gives?

A car loan can be the best way to finance your car. You may be able to secure this from your bank. You may be able to obtain this loan from your local dealership. As with any personal loan, the interest is measured by how much you borrow and the agreed term time. Car loans can run from 1 to 5 years. While it may be cheaper to seek out a loan over a longer term period, you will incur higher rates of interest. So, make sure that you are exploring all of your options. One of the most significant advantages is that you own a car when you drive off the forecourt. You just need to repay the loan over an agreed term time. But, this is not always the best deal. Forecourt deals can be attractive when there is a new car released. Typically, March and September are the best months to seek out a deal from your local car salesman.

Dealership Finance Options: What You Need to Know

Walk on to any forecourt within the UK, and you will see a wide range of finance options available on both new and used cars. This can be an attractive way to finance a car if you don’t have the cash available. www.carbase.biz has stated that this is an excellent way to secure finance if you cannot do so via your bank. Of course, you simply finance the car based on the advertised fee. This must be paid off over an agreed term time. Typically, term times are shorter via a dealership option. What is more, there are interest rates added to this. So, get a full sum of what you will be paying back to make sure that this is the right choice for you.

The 101 on HP and Leasing

Hire purchase or HP is where you pay a deposit for your vehicle. This is done via the agreed period. Typically, HP runs over 1 to 5 years. Much like a car loan, it is paid via a monthly transaction. Once you have paid over the term time, the car is yours. However, this may be subject to a balloon payment. Leasing works in a similar way. You pay a deposit and monthly instalments, but you then hand the car back at the end of the term. However, you can purchase a car. This will be subject to a fee at the end of the term.

Categorized | Car Loan, Car News

Related Posts

Comments are closed.