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Buying a Car: What Are Your Finance Options?

One of the things that you probably rely on in your day-to-day life is your car. This is something that can help you with everything from ferrying the kids around through to getting to and from work. With this in mind, most of us are keen to be able to buy a car that is reliable, safe and will not cost us a fortune in repairs. However, this means finding the necessary money to pay for a new or quality used vehicle.

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Whether you are buying a car for the first time or whether you are looking to replace your existing car, one thing you will need to look at is how you will pay for your new or used vehicle. There are a number of options available for those looking to buy a car and the option you choose will be based on factors ranging from your credit history and financial circumstances to your personal preferences.

4 ways to finance your car purchase

If you are looking to buy a car, it is important to look at the various finance options so that you can select the one that best fits your needs and circumstances. Some of the ways you can pay for your new or used vehicle include the following.

Savings: You may have a tidy sum of money tucked away in savings, and if this is the case you might want to consider using this to pay for your car purchase. Some people prefer to do this because of the low returns that are paid on savings accounts these days. This will also enable you to avoid getting into debt or having to pay interest when buying a vehicle.

Personal loan: You could get a personal loan from your bank in order to pay for your car. You can use these loans for any purpose and you can get some good deals on interest rates. However, this probably won’t be an option if you have damaged credit, as banks are very stringent with regards to their lending criteria in the current financial climate.

Specialist car loans: You can get specialist car loans, which also cater for those who have damaged credit. For example, Car Loan 4U offers guaranteed car loans even if your credit history and rating is poor. You can then use the loan to buy your vehicle from any UK dealership, so you have plenty of choice available.

Dealership finance: You may be able to get finance from the dealership you are purchasing your vehicle from. However, your credit score may impact on your ability to get this sort of finance and you will also be restricted in terms of your choice of vehicles. Dealership finance has also been described as confusing for buyers by consumer group, Which?

These are some of the main options available for those who are looking to purchase a new or used vehicle. It is important to look at the pros and cons of the different finance options in order to make an informed decision with regards to which one is right for you

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