Buying a Car on Finance: Three of the Best Options to Explore
Buying a car can be a costly process. Although there are some real bargains out there, you don’t always want the cheapest option. The vehicle you drive says a lot about you, and an old, dilapidated motor can have a detrimental impact with regards to your professional reputation.
However, the cars that you can afford and the car that you need are often two very different beasts, and this is why an increasing number of people are choosing to buy on finance. In doing so, you have the opportunity to purchase a vehicle that you probably wouldn’t be able to afford outright, and are able to circumvent months of saving in order to achieve your goal.
But with so many finance options available, it can be tricky to know which one is best for you. Although retailers like Shelbourne Motors will often work alongside a variety of credit providers, many people struggle to understand the range of choices available to them. Here are three that you might want to consider, and some information to help inform your decision…
#1: Personal Loans
One popular option among’st those looking to buy a new car is to take out a personal loan from their bank, building society, or a private finance provider. There are a variety of different deals and packages for you to explore, and these will offer varying terms and interest rates for you to choose from. Deals can be competitive, and many people enjoy knowing that once they’ve purchased the car they will own it outright.
#2: Hire Purchase
Another widely recommended finance option is hire purchase schemes. Hire purchase is a means of buying a car on finance, and paying for the overall cost of it in instalments. Most payment plans last somewhere between 12 and 60 months, with an initial deposit of around 10 per cent required upfront. Although rates are often competitive, the downside is that you won’t own the vehicle until you have paid the purchase price in full, and a failure to meet your repayments can mean that the vehicle is seized in lieu of your outstanding debt.
#3: Personal Leasing
One of the best choices for those thinking of buying is to explore personal leasing schemes. These allow would-be purchasers to pay a certain monthly amount in exchange for the lease of a vehicle, with servicing and maintenance covered within the overall cost. Although these programs tend to be an economical option, however, the downside is that you will never own the car, and that it must be handed back at the end of your contract.
If you’re on the lookout for a new car, which option will be best for you?