Buying a vehicle may seem easy but it entails a number of complications. There are several factors to consider such as budget, running costs etc. In fact, it can be one of the most expensive you will buy through the lifetime.
Since there is a heavy amount of money required to purchase a car, a lot of people find out different ways to fund this transaction. With so much financial development, we now have a number of ways in which this can be done so. Here are some of them listed:
1. Personal loans
Personal loans can be acquired from a bank or other financial institution given that your credit history is good. The cost can be spread over a span of seven years. Ensure that the loan is not secured against home otherwise the lenders can possess the title of your home in case of non-repayment.
This is one of the cheapest ways to buy cars with cash. It can be arranged through phone as well. However, some lenders may not grant the loan on immediate basis.
This is one of the best ways to finance purchasing a car. The dealer is paid a fixed monthly amount for the use of car including service and maintenance as long as a specified limit is not crossed. Car needs to be handed over at the end of the agreement.
Lease agreements can be very flexible in nature. Furthermore, the lessee can even change the car every two three years without bearing additional costs. Britannia Car Finance is a platform where you can get the car on good terms.
3. Hire purchase agreements
This is a way of purchasing a car where loan is secured against the car. A deposit of approximately 10% is paid and monthly payments are paid over a fixed period of time. Until and unless the last payment is made, you do not own the title.
Car dealers usually arrange hire purchase agreements and the payments terms are flexible as well.
4. Personal contract purchase
This is similar to hire purchase agreement but the monthly payments usually made are low. However, the total amount of money that is paid cumulatively is often high.
The loan you acquire is not of the full cost of the car. Rather, the loan is for the difference between the price of brand new car and predicted value at end of the hire agreement. Depending on the lender, the repayment terms are flexible and there is a lot room to maneuver at the time of final payment.
can also be used to purchase a car. It can be used to pay the complete purchase price or a make a partial payment. However, there are some dealers who also charge a card handling fee. This type of finance is not much popular amongst car owners due to the fact that relying on credit cards is risky. Sometimes the credit builds up so high that its repayment becomes almost impossible.