When it comes to acquiring a fresh vehicle, whether a brand new car or a second-hand model, there are many ways to afford it. It will likely be one of the most expensive purchases you make, so it is important you are confident in your choice and the method of payment. To decide what the best option is, consider these popular ways of paying for a new car and find the option which best suits your needs.
Cash and Savings
In order to fully own your new car from the off, buying it outright with cash or savings is a good idea. You will need to have saved up a lot in advance to be able to afford it, but it is a popular choice with 52% of car buyers using their own savings. With interest levels remaining relatively low, there is little disadvantage by investing money in a car rather than leaving in your bank account.
Personal loans can be take out from banks, building societies and other lenders to use for a number of purposes, such as financing a new car. As an unsecured loan, you do not need to be a homeowner, and it can be used to cover the whole or part of a new car’s cost (plus petrol, insurance and more if needed).
Car leasing is becoming more and more popular and offers a great way to get behind the wheel of a new car. You simply pay a fixed monthly cost over an agreed amount of time, which includes breakdown and maintenance cover too. It does mean that you never own the car however.
Hire Purchase is similar to leasing, whereby you pay fixed monthly instalments for a set period of time. Yet at the end of the agreed period you do own the car, free to keep it or sell on. You need to pay a deposit (usually around 10%) and the loan is secured against the car so you don’t own it until the final payment.
Personal Contract Plan
With a personal contract plan, rather than paying for a car outright, you pay the difference between its sale price and price for resale back to the dealer. Paid in monthly instalments, the amount is based on a forecast of the annual mileage over the term of the agreement.
All these methods of paying for a car are available through Unbeatable Car when you’re looking for a way to afford your next vehicle.