- Posted 13 Oct
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If you’re looking to buy a car, it could be your first time, or you’re looking to change or upgrade your current vehicle.
Buying a car is no small feat. It often requires spending a lot of money. Luckily, there are a lot of ways to finance your car purchase that can provide you with some long-term benefits.
Because car buying is such a major financial commitment, we think it’s important to carefully consider the many ways in which you can pay for it without incurring any losses.
Here’s a list of a few efficient ways to finance your next car purchase:
1. Car loan
Since car finance is usually such a big expenditure, taking out a car loan might be the best option for you. Whether you’re spending money on a brand new or used car, if you take money from your savings to pay for it, you’ll be using your savings to pay for a liability, when you’re savings are best used to purchase assets with.
It’s better to look for car loans that are flexible with low interest. For first time buyers, car loans can be a bonus since navigating your way successfully around car finance can be quite tricky.
While dealing with a bank about car loans, it’s important to be thorough. Be nit picky and read the fine print; don’t be lazy about the details.
2. Car dealer finance
For people who can negotiate well, dealer finance is a great opportunity to get the best kind of car finance. Car dealers often offer great financial packages, which include car insurance and other important options; with interest rates comparable to those of car loans or personal loans.
If you’re confident you can talk it out with the dealer, car dealer finance might be just what you need.
3. Car manufacturer finance
Car manufacturers also often offer financial packages. These deals might be in the form of car lease or loans.
When you use a finance option, you don’t technically get to own the car until the car is paid for entirely. Factory finance offers lots of packages with steep discounts and low interest rates that can be very useful.
4. Car lease
If you use a car lease to finance your purchase, you will have a lender who buys the car in your name.
The car will technically be theirs while the lease is in place or until you pay it off, after which you will become the possessor and owner of the car in all senses of the term.
Monthly repayments are flexible and interest rates are fixed. There can be no arbitrary rise or fall in the interest and you can negotiate a time period for the lease with the lender.
The best part about leasing a vehicle is that you can often have the monthly repayment come out of your pre-tax earnings, which means you pay no tax on your repayments, saving you money long-term.
4. Personal loan
There are not very many differences between car loans and personal loans. However, the purpose of taking out a personal loan may be many and there’s slightly more flexibility to be found with this as your option.
If you want to find out more about car finance, get in touch with us today and find out how our team of car finance experts can help you buy your next car.