Car Finance Services - What Are The Options When It Comes To Purchasing A New Car Without Huge Amoun
So, you want a new car, but you donâEUR(TM)t really have any money? No problem! You will have plenty of options to choose from and all you need to do is pick the one that is the most suitable. Car finance services come in all shapes and sizes. You could get a loan, contract hire/lease, or even use dealer finance. The choice is yours, but you need to ensure that you pick the service that is going to be the most suitable, but also the one that offers excellent value for money at the same time. What you really do not want to be doing is paying over the odds for your car, simply because you are paying a high interest rate.
Loans
Loans are a great option when it comes to upgrading a vehicle. One of the main reasons for this is the used car market; it is huge. Dealer prices can be extremely expensive, usually 25% more than that of the standard private sale. So instead of going to a dealer and buying a car on finance, you can save money by getting a loan. The loan might be 5-10% and therefore, you will save cash in the long run. Of course, you will need to ensure that your credit rating is good. The better your credit rating, the better deal you are going to achieve. People that have extremely low credit ratings are not going to achieve a decent deal.
Leasing
This is great for people that do not have much cash and are also not 100% certain which car they will need in 12-18 months from the date of purchase. Leasing means that they agree a term. The person will pay a monthly rental and after the agreed term, they can hand the car back. The great thing is the majority of these leases are actually using brand new cars. So every time the person hands the car back, they can get another lease contract. They will then receive a brand new car. Generally, there will be a security deposit involved, which could be around 5% of the value of the car.
Dealer Finance
This is a tricky one. Sometimes dealers offer a great deal. Other times their deals are the worst on the market. The trick is to ensure that you compare the different deals before choosing dealer finance. If you compare beforehand, then you will know whether you are getting a good deal or not.
Loans
Loans are a great option when it comes to upgrading a vehicle. One of the main reasons for this is the used car market; it is huge. Dealer prices can be extremely expensive, usually 25% more than that of the standard private sale. So instead of going to a dealer and buying a car on finance, you can save money by getting a loan. The loan might be 5-10% and therefore, you will save cash in the long run. Of course, you will need to ensure that your credit rating is good. The better your credit rating, the better deal you are going to achieve. People that have extremely low credit ratings are not going to achieve a decent deal.
Leasing
This is great for people that do not have much cash and are also not 100% certain which car they will need in 12-18 months from the date of purchase. Leasing means that they agree a term. The person will pay a monthly rental and after the agreed term, they can hand the car back. The great thing is the majority of these leases are actually using brand new cars. So every time the person hands the car back, they can get another lease contract. They will then receive a brand new car. Generally, there will be a security deposit involved, which could be around 5% of the value of the car.
Dealer Finance
This is a tricky one. Sometimes dealers offer a great deal. Other times their deals are the worst on the market. The trick is to ensure that you compare the different deals before choosing dealer finance. If you compare beforehand, then you will know whether you are getting a good deal or not.
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