Thursday, October 1, 2020
Home Business The Best Ways to Finance Buying a Car

The Best Ways to Finance Buying a Car

Buying a car? Dont worry, we have a number of options for you to choose from

So, you have set your sights on getting your own car. If you have saved enough, you can pay the entire amount at one go and not have to worry about anything. But the average person might not have that much money. If you too belong to that group, then you need not fret. Have a look at the various options that you have and decide for yourself.

1. Loan

Get a loan from a bank or any other finance company. If you have a good credit history, this option can turn out to be the cheapest. To get the best interest rate on your loan, you may need to look at different options. NowLoan can help you find the best lender.

Pros

  • You get the ownership right from the start
  • Formalities can be done online

Cons

  • Requires good credit history
  • It can affect your ability to borrow more

auto financing car
If you buy a car with the help of a loan then you get the ownership of the car from the start. Pixabay

2.Personal Contract Purchase

At the start, you pay a deposit. After that, you need to pay a monthly payment for a period of 2 to 4 years. Once the contract ends, you can pay a final amount of money and buy the car. Or, you can exchange the car for a new one and continue as usual. Or, you could simply not continue any further and return the car.

Pros

  • Greater choice after the end of the contract
  • Flexibility in terms of payment

Cons

  • You may have to pay extra for mileage higher than a certain limit
  • More tear and wear can result in higher charges

3.Personal Contract Hire/Lease

If you simply want to hire a car and not buy it, then this method can turn out to be cheaper. Under this process, you provide a deposit. You continue to pay monthly instalments until the end of the lease contract. Once the contract ends, you need to hand the car back.

beautiful car
You can hire a car if you want flexibility in terms of payment. Pixabay

Pros

  • Flexibility in terms of payment
  • Monthly payment includes servicing and maintenance costs

Cons

  • Deposit needed of 3 months payment
  • In the end, you have to give up the car

4. Hire purchase

In this payment option, you are hiring the car until you finish paying the whole amount. Once the last instalment is paid, the ownership of the car transforms to you. First, you need to pay a deposit of around 10% of the price. Then, you need to pay a monthly instalment for a certain period.

Read More: Live Music Can be Rocked Virtually Also Now

Pros

  • No extra charges for wear and tear or mileage
  • Flexibility in duration

Cons

  • You will get ownership only after you have paid the final instalment
  • The monthly payment is higher than other option

Conclusion

Each of the options listed above has its advantages and disadvantages. You will need to look into the ones that are most suitable for your needs. Calculate the total cost by including the deposit and each monthly payment. Know about extra or hidden charges you may have to pay. You can get in touch with a trusted broker like NowLoan online to get the most suitable lender and easily get that dream car.

[Disclaimer: The article published above promotes links of commercial interests.]

STAY CONNECTED

19,134FansLike
362FollowersFollow
1,779FollowersFollow

Most Popular

Lack of Vitamin-D May Result in Obesity, Says Study

We have now one more reason to maintain vitamin-D in our body as researchers have found that vitamin D deficiency during early development can...

Contemplating the Indian Constitution In Two Different Ways

BY NEHA HEGDE The Indian Constitution can be viewed in two particular ways. The Conservative Constitution and the Transformative Constitution. One sounds more of criticism...

Students Use Mobile Phones Excessively in Lockdown: Study

Parents and children are spending more time on various screens at home which is seriously affecting their health and now a new study reveals...

Lots of Change in Punjabi and Hindi Rap: Yo Yo Honey Singh

Rap superstar Yo Yo Honey Singh has been around for a decade and a half now, and he says there has been a lot...

People May Get Protection from COVID if They Had Common Cold in Past: Researchers

In a big breakthrough, researchers have found that people who have had about the seasonal or common cold in the past may get protection...

6 Ways to Choose the Best Paid Marketing Agency 

In simple words, Pay per Click is an advertising tool that the advertisers use when they want to advertise their company through another site....

Getting Rid of Stretch Marks During And Post-Pregnancy

Stretch marks are a common annoyance during and post-pregnancy and the easiest and most convenient way of reducing these marks is by following a...

Most Parents Deny To Send Children If Schools Reopen

A majority of 71 percent of parents will not be sending their children to school in October even if schools reopen. With rising COVID cases,...

Recent Comments