such a wide range of car
finance options available today, car
financing can be a much painful than you thought. Questions
like whether you should go for a personal
loan or with a manufacturer’s
deal or part-exchange your current vehicle further adds to
the problems. Have a heart, now here are some of the options
by way of which you can raise finance to achieve you dream
machine, read on:
Purchase : In hire purchase, although interest
but can be
quite competitive against bank loans.
This option by dealers is offered on new and used cars. Though
this loan is easily available, however, you do not own the car
until the final payment is done, which means you cannot sell
the vehicle until you have settled your loan.
: If you’re sensible you wouldn’t
pay for your car over the next 10-20 years, especially when remortgaging
being the cheapest way to borrow (unless you get interest-free
finance). More so, if you’re a homeowner, most mortgage companies
will allow you to borrow for more than one purchase.
• Interest–free Finance : Interest-free
finance can be availed from car dealers and are only for
brand new cars. It is the ideal way of having a brand new
car without paying
interest on any finance. But getting interest–free finance
and a discount at the same time can be quite a task.
Contract Purchase : Monthly payments from your bank account
are spread out over a pre-defined period (normally
2 to 4 years). At the end of the period, you either make a lump
sum payment to purchase the car outright, or you hand it back.
Loan : Personal
loan can be arranged via banks,
building societies and finance houses. This loan can be arranged
along with the purchase of a car, meaning that you’re a ‘cash’ buyer
in the eyes of a dealer.
Loan : Similar to personal loan, only benefit here is that
get additional benefits such as payment 'holidays'
or a free car inspection prior to purchase.