Next to buying a house many people would want to get a good car for themselves. When getting into such a big monetary commitment, it is important to do proper research and gain a good understanding about the various financing and car loan options available. You could have bought a good car at the best price but have you chosen the right payment method for paying back the cost? Here, you will get to know some of the most popular and practical payment methods.
Advantage – You will not be required to pay any interest amounts. Once you buy the car, you gain complete ownership. Since you are buying by paying the full amount, the dealer may even give you further discounts or incentives.
Disadvantage – It may take a long period for you to save and buy a car.
Advantage – Unsecured loan are at the cheapest level they’ve ever been, even car dealers would provide good loan rates. Moreover, this loan type does not put your property or other assets at risk.
Disadvantage – Good credit rating is required to secure this loan. You will have to pay some interest amount that adds up to the overall cost of the car.
Advantage – Even if you paid the car deposit amount using the credit card, protection from the Consumer Credit Act and the Consumer Credit Directive are made available.
Disadvantages – Once the no interest rate period ends, you will have to pay high credit card interest rate that averages around 17% per annum. To add, the credit limit may not support the entire purchase and hence it is best to you use it to pay the deposit amount.
Advantages – You can borrow a larger sum of money and it can be obtained by people who do not have good credit scores as well.
Disadvantages – In order to get a secured loan, you need to have equity in a property. In case of default, you risk losing your house. Interest rates are also higher in this instance.
The above payment methods are some of the options which can be used to buy a car. Clearly, the best choices are to actually save or aim to get a secured loan which offers affordable monthly repayments.
At FreePriceCompare.com you can check and compare the various loan options and payment methods. Using our hassle free service, you can find the best option in the quickest time.
Call us on 0800 977 5741 / 0203 4757 476 or fill in the contact form and we will find out for you – it’s a free service with no obligation. Remember you don’t want to get automatically rolled over by your current supplier. Let us help you by keeping your bills down.