The Options You Have When Buying A Car

The Options You Have When Buying A Car

downloadThere is no one single way of buying a car. There are plenty of options and all depending on your preferences and your budget. I want to explain the options to you so you can get an idea of which way you can go considering your situation.

Use you cash or save it?

Putting your money into a savings account could lead to you earning a reasonable amount of interest in the long run. However, if interest rates in the market are low, you will be better off using that money to fund some of the cost of the car you want to buy. You could make a bigger deposit for your car so that you can save on interest fees. Of course you will have to make sure that you will leave some emergency money that you will badly need in case something bad happens.

Personal Loans

You can get an unsecured personal loan to get the cash you need to buy a car of your choice. Since this is a personal loan, it might take a while to process and have the funds but the application process is pretty easy and straightforward. However, depending on your credit rating, you might not be able to get the whole amount you need for the car you want. If you are willing to work on finding a car within that budget range you are approved for, then this should be no problem. But if you think you deserve a better deal that what you are getting, be very careful because this application may have already have a hit on your credit, which will affect future borrowings and which might actually lead to even lower credit.

Hire Purchase

Hire purchase is like renting a car until you have paid enough rent to own it. This is pretty quick and very easy to arrange but it requires at least 10% deposit. You will have flexible term for your repayment and you can find very low rates. One thing you must understand though is that you do not own the car until the last repayment is made so you won’t be able to legally sell the car if you feel like doing so.

Personal Contract Plan

This is almost the same as the hire purchase but you have different options at the end of the term. You can return the car, trade the car in for a better model or keep the car. You can get lower monthly repayments but you will be limited to use the car only within the certain mileage agreement. Also, if you want to keep the car at the end of the term, you would have to make a balloon payment so it’s much like you would need to keep the money you save from lower monthly repayments and put it into a savings account to use later to pay off the car or add deposit for a trade in.

Personal Leasing

The thing about personal leasing is that you are basically just renting a car. It will never be yours and you will end up paying for the extra mileage that goes beyond the limit you and the dealer agreed on. You do however get a flexible term, which could range from 12 to 36 months and you also don’t have to worry about depreciation in your vehicle’s value.

So there we are with the options you have. I have just provided you with a summary but I trust that you will keep on researching for the best option for you. Remember that a car loan is no laughing matter and if you want to make sure that you are ready for a long term commitment like this, you have to really think about all the factors from your end and from your car loan provider’s end. Shop around and compare and do not ever make a decision in a rush. If the car loan provider is pressuring you to agree to something you are not sure of, run away!

What You Need to Know About Car Loans

What You Need to Know About Car Loans

loanneedCar loans are very important and very expensive. If you are taking one out, you want to make sure you are getting a good deal and a deal that you can stick with for a long time.

Here are some tips I would like to share about car loans:

  1. Your credit determines your interest rate – the better your credit rating is, the better APR you can get. Those with excellent credit often get the advertised rates but if you’re one with less than perfect credit, you will have to manage your expectations because you will surely get a higher rate. Those 5.1%, 5.7% and the like are only for the high credit scorers. How do you become one? Well, it beats me, really because I am just as hard up with my finances as anyone else.
  2. Determine a budget before you head on to car dealers – You don’t want to decide on how much you will spend once you are already there looking at those great cars. If you’re looking for a car that’s within your budget, higher priced cars don’t confuse you because you simply don’t look at them anymore. I have a friend, yes I have quite a few, who went car shopping without so much as thinking about how much he was willing to spend on a brand new car. The salesman of course did his job and sold him the car making him believe that he could afford it if the term was longer. Needless to say, he did find it very difficult to cope up with that added expense.
  3. Look at the total cost – ask for a total cost computation to see how much your car loan will cost you in general. A low monthly repayment rate and a low interest rate may not necessarily mean big savings for you if the term is too long. Most car loan comparison sites have online car loan calculators so you can check how much everything will cost. Even considering deposits is a must because if you pay low deposits now, it may mean that you have a higher balance that will be accruing interest so try to weigh things out.
  4. Shop around – like anything else you are buying, the key to finding the best is to shop around and compare what you are getting at what cost. You may be able to find a better deal just by going the extra mile of looking at other car deals from other dealerships or car loan providers. There are plenty of sources for car loans so don’t hesitate on turning down one even if you liked their service a lot if you find a lower deal somewhere else.
  5. Ask about prepayment fees – if you are planning on paying your car loan off early or if you think that this is something that’s possible for you to do, make sure that your car loan provider does not charge an early payment penalty fee. Sometimes, an early payment fee could be as much as a couple of months’ interest, which is a lot of money.
  6. Look at insurance options – since you are making an expensive investment for buying a new car, you might as well look for the most appropriate insurance policy for your car.

First Response Finance

This one has mixed reviews and a few of my friends have very different opinions about their experience with them. Some are happy with the fast service and the efficiency, others are mad because of the rates and some are not too sold on whether to go for them or not. Nothing against First Response Finance but really, to have an edge in the car loan industry, you really need to consistent with your service. I am guessing that they are still trying to polish their processes and hopefully they do get better sometime soon. Sure you cannot please everybody but you also cannot piss off everyone. I guess we could peg this car loan provider at average.

One thing they are good at though is bad credit car loans. With that, they can help you find a car loan. Don’t fool yourself though; you should be prepared for higher interest rates if your credit is less than perfect. They also specialize in used cars for sale and do have a pretty good range of car selections there.

Car Finance 4U Ltd

Another great car loan provider is Car Finance 4U. They also accept bad credit car loan applicants and you’d find a big chance of getting approved. They have car-financing experts looking for the best car financing for you. Do a quick search about this car loan provider and you will see many reviews. They are efficient, friendly and very helpful.  What sets them apart is the way they take care of the smallest details and let you know about what you actually need to know without any hard selling. They find great options for you and you can get guidance from them as to which deal could suit your budget the best way. The application process is fast and they waste no time at all. Upon application, you get a decision with an hour as to whether you are approved or not. They don’t give you a general rate instead they make sure everything is suitable for what you are looking for. Once you are have chosen the car after being approved, they process everything else and put everything together so you could get your car and enjoy driving it immediately. Car Finance 4U is great but they could do better with finding lower rates. Aside from that, everything else is impeccable. 

PeoplesCarLoans

Now here’s another good one. Great even. I would not try to exaggerate but I just want to give high recommendation for this car loan provider. The process is quick and easy and they do almost everything for you. You can apply online or give them a call and they will be glad to assist you from start to finish. I know because I have experienced it with them and I also have a few other friends who used the same car loan provider. PeoplesCarLoans has a pretty wide range of options. You’ll find all sorts of car financing deals with them and pretty much a wide range of interest rates as well. The thing I liked the most is how fast the turn around time is and I drove away with my new car 3 days after I applied. It’s really hassle free because they do try to do everything for you. I recommended them to a couple of friends and they all had the same experience. I’m glad to see that I did not make a mistake there and that they are not a one off good deal. This reliable car loan provider is for me the best.

This car loan company also gives chances to those with not so good credit. Whatever financial circumstance you have, they can find a suitable car loan without the pressure. They don’t charge you administration or application fees so you don’t really need to feel pressured at all.

Clydesdale Bank Personal Loans

Like it is always mentioned, if it’s too good to be true, it’s probably not so anyone could go on and on about the benefit of the doubt here but there’s just one too many complaints for this one. I talked to a friend who was offered 5.1% APR on his car loan and he was left believing that that is the actual rate he is getting. You could imagine how happy he is because that is a pretty low rate; lowest of the low you could even say. Unfortunately, at the time everything else was ready, he learned that he was going to get 12.8%. Ridiculous I’d say. Of course we understand that the interest rate depends on your credit rating as well but at least you know what to expect with other car loan companies. People will really do everything just to get some attention but unfortunately for Clydesdale Bank, not many are happy with their service.

Unfortunately there are still some car loan providers that seem to not catch up with what consumers actually need. Of course low rates are one of them but you can never discount the fact that great customer service goes a very long way. If a credit provider works in a suspicious way, it’s always best to stay away from them. There have been countless of bad deals getting worse and you would not want to be one of them for sure. I always tell my friends that if they are feeling something off with the credit provider, just go somewhere else.

How to Finance a Car – Video Review

Concept Car Credit

For some time now, Concept Car Credit has been creating its own good reputation with outstanding customer service. This Manchester based car dealer is much appreciated because the staff people are friendly, courteous and always ready to help. Like other sites, you can apply online or give them a call to ask what rates you could get. There’s a selection of cars from their website so you can go straight to choosing the car you like. If you don’t find one though, you are probably better off looking for another car loan provider elsewhere. The good this is if you’re buying a used car, you can have the peace of mind that Concept Car Credit has already performed the necessary checking on the vehicle before they even sold it to you. Concept Car Credit is actually like a car dealership of used cars where you can sort of get in-house financing for your car loan. There are quite a great number of satisfied customers so I’d say they are one of the good ones.

If you are opting for a used car to buy, Concept Car Credit is a good choice for a car loan provider. As long as you find the right car from their showroom, you are going to love dealing with them.

Infinity Finance

Another car loan provider that promises low rates, better approval chances for any kind of credit, flexible terms and great assistance is Infinity Finance. We all want to find the right deal and having so many choices could lead to more confusion but I dare say that this car loan provider easily takes away the confusion with their great service and flexibility.

Infinity Finance is prompt and friendly. Their service is great and you also get a lot of options. You can even get a free HPI check and they require no deposit. Whatever financial situation you have, you are welcome to apply and they will match you with the most appropriate car loan deal they have. You apply online with them and once you are approved, you can go car shopping knowing how much they have approved you for. Once you pick a deal, they send over the paperwork to the dealership and take care of the whole business so you can drive away with your new car as fast as possible. It’s easy and straightforward. They call you back whenever they promise to do so to keep you updated about what’s going on with your car loan application.

Buying a car is a big deal and you would want to feel that you are being taken cared of by your car loan provider. Infinity Finance extends that courtesy to take care of you every step of the way. They are easy to approach and you can ask them everything over and over again and expect the same polite response all through out.

CarLoan4U

Cars are expensive. It’s not an expense you play around with especially since it is going to be the 2nd most expensive purchase you will ever have after a house. You surely want to find the best car finance and it pays a lot to patiently do all that research to compare and contrast which car to buy, which car loan provider to go with and where to get the lowest rates possible.

Fast processing, simple and stress free car loans are available at CarLoan4U. They are probably one of the best car loan companies around and they have really good customer service. Their customer service is consistently impeccable from start to finish unlike some loan companies that once they get you to sign the agreement, all those smiles and courteousness go away. CarLoan4U processing time is also fast and my friend actually drove away with his brand new car 4 days from the day he started the application. They have a very wide range of car loans available and they are also willing to explain everything to you, which is really great because you’re buying a car here, not a shirt, right?

Overall, CarLoan4U receives great recommendation and outstanding reviews from its clients so I’d say it is really one of the best in the UK.

CarLoan4U also has bad credit car loans so even if you are having problems with your finances, you can still find a suitable car financing deal with their help.