Buying a car is not an easy decision to take. From buying it outright to getting it financed, there are many options at your behest. You should also consider running costs. In fact, it is probably the second most expensive thing you will ever buy, after your home. So it is important that you are sure about the best way to buy a car for you. Here, we’re providing you two ways.
Buying a Car using Hard Earned Cash
Make use of various Car costs calculator available online to work out the total cost of motoring.
The cheapest way to buy a car is to fund all or a part of it with cash.
This is because you will have to pay interest on any loan or finance agreement, you take.
If you decide to use cash, remember:
- Ensure that you have enough savings left over for an emergency after you have paid for your car.
- If you don’t have enough savings to buy the car with cash payment, then use what you can afford to put down the biggest deposit you can.
- Even if you use money from your savings you might be better paying for the car on your credit card so, that you get benefits from credit card purchase protection – like putting just £100 of the cost of the vehicle means the card company is jointly liable with the retailer if things go south. Remember, to pay the bill off in full the next month.
Buying a Car using a Personal Loan
In case you cannot afford cash, a personal loan is usually the best way to get a car financed, provided you have a good credit score.
Pros
- It is the best and cheapest alternative after cash.
- It could be arranged over:
- Phone,
- Internet or
- F2F Interview.
- It covers the whole cost of the car, but exercising this option isn’t compulsory.
- You can get a competitive fixed interest rate if you look for options in the market.
Cons
- You might have to wait for the funds to be paid into your bank account but some lenders make funds available almost immediately.
- Your other borrowings might be affected.
- Your monthly costs could be higher as compared to other options.
Reference Link :
If you wish, to know more about the ways to finance a car, then visit your nearest Car Dealer Or, Try a Google Search.
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