Many people decide that they want to keep their existing car and save for a new one. Others go down the finance route. If your car has given up and gone to automotive heaven, you may find your choices of finance somewhat limited.
Now is the time to make a decision: how will you finance buying your car?
Savings and Cash
This, without a doubt, is the easiest way to buy a car. If you have the money available, you will be aware of your budget and what you can spend. The great thing is that by paying cash you are in an excellent position to haggle for your new vehicle. For many, this is an attractive prospect. Savings and readily available will enable you to get a better deal all round. However, you will be restricted to the confines of your budget. If you only have £1,000 in savings, your options are going to be somewhat limited.
A personal loan can be sought from your bank. This is an ideal solution for those that have a good credit rating. A personal loan can be sought with good rates of interest. The good news is, is that you can shop around for good deals on the interest rate. The UK high street is home to many different banks.
However, if your credit rating is less than good, you may be subjected to higher rates of interest. This means that your car, overall, will cost you a great deal more than you would first anticipate. Do prepare yourself for the fact that you could have your loan application rejected. After all, the high street banks are now more cautious when loaning money for non-essential items.
If you have found your dream car, you may be able to discuss finance options with your dealership. Talk to Mercedes Inchcape to discuss your finance options. This is a great way to ensure that you get the car of your dreams. What is more, you will not be confined by budgetary constraints.
There may be a greater range of finance options available to you from the dealership. This includes hire purchase, operating lease and contract hire. You can get a lot of finance options from your dealership. What is more, these will be subject to competitive rates.
Things to Consider
We can all get a little excited when we are buying a new car. You do need to remember only to borrow what you can afford. You don’t want to face financial hardship when buying a car. You need to consider all of the other associated costs with the car. While the 3.4 litre engine may be great, if you cannot afford to fuel the car, it is somewhat pointless. Remember to consider all of your other costs such maintenance costs and repair fees so that you don’t get caught short.