Loans for Cars
Is is worth borrowing to stretch to a new car?
Summary: Nothing beats the feeling of driving away from the showroom in your brand new car. Driving the best bargain when it comes to the finance side of things is a close second, though!
Of the approximately 2.3 million new cars sold each year, just over half are registered for the first time in March. September, the month when the registration suffix changes, is the second highest registration month.
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There's a wide choice of ways to pay for your new car. Cash buyers have an advantage in that it should be a no problem at all to find a supplier who'll offer a good discount. If there's no vehicle to part exchange you'll be able to complete an even more straightforward deal with a minimum of delay.
When all the test runs and mountains of car brochures have been completed and the time has come to place the order, go a step further and carry out some research to find the best deal that you possibly can.
If you do need some finance, there's a range of options. It depends on your choice of vehicle, but some dealers will offer 0% credit or other special offer to secure your order. Sometimes this is only on certain, less popular, models and if there isn't one of these deals on the car of your choice, then you should be aware of the fact that typical showroom finance can be expensive. Your salesman will be delighted if you take out one of their finance plans, the commission paid to him will be very welcome, no doubt!
Hire purchase is just one popular option. This is a type of secured loan, with the vehicle being used as security. The car remains the property of the finance company until the final monthly repayment is made, when the ownership passes to the buyer. Interest rates can be very competitive, particularly for buyers with a good credit record.
