Getting a new car is always an exciting time. There’s the thrill of picking one out, the first roar of the engine, and that amazing time you first take it out for a spin. But despite all this, there is one aspect of getting a new car which isn’t so much fun. Working out how to finance a new car can sometimes be a real pain in the neck – and a pain in your wallet as well. Luckily, there are many options available for would-be car owners, to help take the sting out of purchasing a vehicle.
Possibly the simplest way of affording a new car is to save up the money beforehand. This, however, can often be a long, arduous process, during which time you may well be without a vehicle. Because of this, saving for a new car is an option which is generally only chosen by those who have the time to save, such as parents saving for their child’s first car. But if you’re thinking about saving for a car, there are certainly some better ways to go about it than others. Consider high interest savings accounts, tax free ISAs, or even savings bonds; all of these will increase the potential of your hard earned money.
Dealership Lending Agreement
Most car dealerships will have their own lending agreements, which are offered to all prospective car owners. The main benefit of getting financing from your lender is that you can usually drive your car away on the day you pick it out. But remember, dealership lending can be pricey, and isn’t always the best option for your finances.
Independent Hire Purchase
If you don’t want to be tied down to just one dealership, and don’t have enough savings to purchase a car outright, you may wish to consider the potential of an independent hire purchase agreement. This sort of financing is available from a number of different lenders, including The 1st Stop Group, and is the best option for anyone who’s looking to buy a car, but who needs a little more flexibility with their financing. What’s more, this type of lending – unlike most bank loans – is available for all sorts of people, whether you’re a homeowner or tenant, and whether your credit is good or poor.