Acquiring a new car offers a multitude of different options to finance it. Choosing the most appropriate method for your situation can be tricky with so many factors involved. To get the best deal whatever your budget and goals it’s always important to make the effort to negotiate wherever possible and do plenty of research beforehand.
Whether you’re after a brand new Ford Focus ST or a used BMW Z8, buying from a dealer or independently presents different financing opportunities.
Using a Dealer
Paying outright for a new or used vehicle is usually the most cost-effective way but for many it can be hard to save up enough for the expensive car they so desire. Going to a car dealership provides a few alternative financing options. Hire purchase is a scheme which involves paying an initial deposit and then the rest of the vehicle’s value (with interest) off over an agreed amount of time. Then you finally own the vehicle.
Leasing deals are also available, whereby you pay monthly instalments to use a particular car but don’t actually own it. This is best for driving a more expensive vehicle with servicing and maintenance costs usually included, though you still need to take out comprehensive insurance. There are no worries about depreciation either.
Avoid going through a dealer who will normally charge higher prices and source your new car yourself. Personal loans can be taken out to cover the cost of a fresh vehicle and means you own it from the start, while having to make monthly repayments makes it similar to hire purchase except you own from the beginning.
Using a credit card is another option for anyone with plenty of credit. Not all car sellers will accept credit card payment and they may add an extra fee, so it is important to check first. If you’ve got good control over your finances this is a worthwhile choice.
Where to Look
When you’ve decided on your financing option it’s best to look in the appropriate places which will accept this method of payment. Many online car sales websites are open to using credit cards, while specific car leasing sites specialise in providing the best prices around.
Always check beforehand but the majority of car dealerships and local garages will let you pay by credit card and through hire purchase or leasing schemes. Getting your ideal car has never ben simpler with the array of financing options available.