Posts Tagged ‘Car Finance Tips’
December 16th, 2009 | 
Author: Buying a new car is always a big step as it is typically one of the biggest outlays a household has to make. Your new car finance options often depend on where you are getting the vehicle from. For example you may be buying from a private seller through an advert you have seen on a specialist motoring website or in a paper, or you may be thinking of getting one from a dealership.
If you do decide to buy from a dealership you may have more choice when it comes to setting up a loan. For example, the dealership may often offer a hire purchase option. Typically this involves paying them back money they have loaned you to buy the car over a set period. The main attraction of this is that you spread the cost of the repayments, and potentially reduce the hit on your bank balance.
On the other hand, hire purchase often involves an interest rate which means that you may pay more for the car than if you bought it outright. Typically you may expect repayment periods to differ and you may even be given the option of repaying over two or three years or four or five. The longer periods typically involve a higher rate of interest, but smaller monthly repayments.
Getting a deposit together may be an especially important point to consider. With some dealerships, if you are able to gather as much as 40 per cent of the purchase price, for example, they may be able to offer you a zero per cent interest deal.