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Wiltshire Car Dealer >> Car Finance
Car Finance
When buying a new or used car from a private seller or a car dealer you will need to carefully consider how you intend to finance the car.
The main options available to you include:
- Taking a loan from the bank. This should be a straight forward process if you apply to your own bank and your credit history is good, although the bank will also consider your financial history with them too.
- Obtaining a loan from the car dealer (used car finance or new car finance). Car dealers can offer some attractive deals with add ons and perks as they are usually paid extra bonuses for selling the finance package to you. However, you may end up paying a higher interest rate than with a loan from your bank.
- Obtaining a loan from an independent car loan provider (used car finance or new car finance). Many of these can be found on the Internet. Always shop around and compare prices of interest rates to make sure you get cheap car finance.
- Paying by credit card. This will usually be the most expensive option and could mean bad news for you financially if you fail to keep up repayments.
- Paying for the car outright. If you can afford to pay for the car upfront this could save you hundreds of pounds that you would pay in interest rates with a loan. When paying for the car outright a bankers draft or a chaps transfer provide the safest options - never carry large amounts of cash around with you.
With any car loan make sure you check what happens if you need to return or sell the car - can you pay off the loan early or are they any early redemption charges? Always read the terms and conditions carefully.
Whichever method of payment you choose, make sure you've done some homework before you approach a car dealer and know what you can afford to pay. Leaving it all to the last minute almost guarantees you won't get the best deal available, so it's worth doing some initial legwork before you buy.
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