How to Finance a Car on Cheap Rate?

By: Gracy Bonsu

Financing a car is not difficult at all. There are so many options available in the market that you can easily choose one and get your dream car on instalments. But, if you fail to make the right decision, you might end up in losing quite a few pounds.

Just consider this fact - a website providing loan comparison services says that car buyers could lose ?1,171 in unnecessary interest payments if they choose a wrong finance deal. Usually, people commit mistake by opting for an over-priced credit deal from car showroom instead of taking out low cost loans from online lenders or High street banks.

People often spend very less time in deciding for a loan deal. Most of the time, they are obsessed with the type and model of the car that they want to purchase. They tend to ignore the cost factors. Such people usually fall for the first loan deal that comes their way and it is more often than not a showroom finance deal. But, not all the borrowers behave alike. Many people take help of independent websites that permit convenient comparison services between the different lenders and their products. Such borrowers appreciate those lenders who give them low cost loans and make car finance process more affordable.

Let us consider the other options available to you as a borrower. Apart from showroom car finance and like personal loans and car loans, there are some options like hire-purchase plans, personal contract plans and deferred purchase plans. In deferred purchase plans, you are required to pay off the entire interest and a part of the principal loan amount, leaving the other part that is to be paid on the expiry of the loan term. Making a comparison between different offers will help you find some low cost loans.

Auto Finance
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