Buying a car is a big, exciting decision. And there’s lots to decide. Not only have you got to whittle down which type of car might be the right one for you, but you’ve got to figure out which way to buy is best for you too. We take a look at the different ways that could be the best for you.
If you have the cash sitting in a savings account, and it’s not earning much in terms of interest, then instead of borrowing the money, you could spend it on a car. You could use your savings to either fund part, or all of your car; just make sure that you don’t use all of your savings up.
Saving up for a Deposit
Because of companies like us here at motorfinance 4u, deposits are not always necessary if you’re struggling for spare cash. However, if you decide that you want to save one up (or use some of your savings), it could make your repayments cheaper by hundreds of pounds overall. There are lots of tips to help you to save up for a deposit. If you’re finding it difficult, take a look at your incomings and outgoings, and have a look at where you can make changes. Upping your income or lowering your outgoings could mean that you have more funds that you can put towards your deposit. Everything from making a hobby earn you a bit of cash to not buying a coffee every day, can make a difference, and will ultimately make a difference to your repayments.
Using Your Credit Card
If you can get a good enough deal, then a credit card could be the best way to buy a car for you. Ideally, you should be prepared to pay the card off during the interest-free period to avoid paying the interest when it ends. It’s a good method to combine with savings, if you have them, because you will benefit from credit card protection.
Of course, if you aren’t in a position to save up for a car, or you need one immediately, then savings and credit cards aren’t the best way to go. Instead, a personal loan may be better for you. It allows you to get preapproved for finance before you buy a car. It’s not secured against the car, instead it depends on your credit score.
Reputable brokers like us can help you get a loan if your credit score is bad, or you are self-employed, because we look at applications individually and we work with a number of different lenders, to offer you the best chance of arranging the right finance deal. You should know how much you can afford to repay with loans so you don’t overstretch myself.
You can discover more about the different types of car finance here.
If you’re looking for car finance, then please get in touch and apply with us today.