When buying a new car, you are presented with many different options in terms of financing it. While it is always good to have different avenues to go down, this can make it a little bit overwhelming and confusing, as you struggle to determine what sort of solution is going to be right for you and your situation. With that being said, let’s take a look at some of the different ways you can fund a car in further detail.
Personal contract purchases – Personal contract purchases can be especially suitable if you are someone who likes to change vehicle every few years. With this sort of set-up, you will pay a deposit and then monthly payments. At the end of the contract, you have two options. You can either give the car back or you can pay a lump sum to keep the car. A lot of people do the latter and then sell it on.
Hire purchase – This involves you paying a deposit and then repaying the balance over a loan period. You will also need to pay interest. If you miss a payment, the finance company can reclaim the vehicle because you won’t actually own the car until the last payment has been made.
Take out a loan – There are many different loan options available for anyone looking to buy a new or used vehicle. Car title loans are designed especially for those wanting to buy a vehicle, and you can often receive your cash the same day if you get approved. The other option is to take out a bank loan, which can take a couple of days or so. The best thing to do is work out which is going to be the cheaper overall, as well as determining what fits into your situation better in terms of the monthly repayments.
Put it on a credit card with an interest-free period on purchases – Another option when it comes to buying a car is to put it on a credit card. This is a good idea if you can open an account that will give you an interest-free period. There are lots of different cards that give you this option today. You could, therefore, put the car on the card, and then make monthly payments, with the aim of paying off the full balance before your interest-free period ends.
As you can see, you have plenty of different options to choose from when it comes to financing a car. From personal contract purchases to taking out a loan, if you do not have the money available to finance the purchase yourself, there are lots of lending opportunities for you to make the most of. The best thing to do is work out what is going to be the most affordable for you in terms of your current financial situation.