There is a wealth of choices when it comes to financing your car. Some people like to pay in cold, hard cash. But, when this is not an option, it’s time to investigate ways that you can make the most of your finances and still have a decent car.
What’s more, a used or nearly new car can come with finance options. You don’t need to have a bulging bank balance to ensure that you have a car that is fit for purpose. So, how can this be done?
Personal loans have the lowest interest rates in over a decade. They can be obtained from your bank and have low associated interest. They are secured to your property if you are a homeowner. Typically, these will offer the lowest rates of interest. If you are a renter or you live with your parents, you will have an unsecured loan. This will incur a higher interest fee. At the time, the interest rate lies around 6%. But, of course, this is not standardised. Your bank will have its own personal loan rates, so do be sure to check over the paperwork before you commit. This can be done online and is a relatively painless process.
Manufacturers finance can be a complicated route to getting a car. They are difficult to understand. What’s more, they can be a nightmare to unravel. With this, you need to ensure that you are doing the research. Make sure that you are looking into what the manufacturer is charging. It may well be an attractive deal. But, the car jargon is enough to tip people over the edge and omit this entirely. Unless, you’re a financial whizz and you know exactly what you are looking for, this can be a laborious process.
Dealership finance has become a key way to obtain credit for a used car. Buy here pay here in NH, or NY can be a good way of making sure that you are getting the car you want for a great rate. The buy here, pay here scheme is often attractive to those who want a no-nonsense approach to car financing. What’s more, you can cover the cost of the car and nothing else. With personal loan, you may have to borrow more than what you wanted. Usually, a dealer will ensure that you are given a breakdown of weekly payments and what the term time is. With that, you can calculate interest repayments with ease. What’s more, if your credit history is less than perfect there are usually ways that dealerships can still get finance for you. Unless you’re unemployed, you won’t be rejected for this kind of loan. The interest can be a little higher, but you get more flexibility.
Hire Purchase and Personal Leasing
When it comes to the used car market, this is not something that is typically offered. But, with the rise of ‘nearly new’ cars dominating the market, personal leasing and HP has become more commonplace. You simply pay a monthly supplement for an agreed term and pay for the car until then. Sometimes these deals go on for three years, some go on for five. You just pay the supplement and hand the car back when the term period ends. However, there is a catch. You may only be allowed to drive within a certain mileage limit. So, make sure that you don’t underestimate.