Get yourself a Set of Wheels With Used Vehicle Loans

By: Andy Adams

These days driving a car is expensive; fuel is at an all time high, congestion charges threaten our major cities and new cars are priced well out of many low income earners price range. It is no surprise that it can be tough buying your first motor, the majority of new drivers are having to lump for an old banger until they earn a bit more.

This is all well and good but older cars are inefficient and costly compared to newer models, with gas-guzzling cars and inefficient vehicles getting the short end of the stick this year in the chancellor's budget it is going to become increasingly harder to finance a run around, let alone a big unnecessary 4x4!

So what can you do, buy a brand spanking new car on finance? Being stuck to a seemingly endless pay scheme until the end of time? No, many people are turning to loans for buying perfectly suitable and safe cars with agreeable rates negotiated with the loan providers rather than the commission hungry car dealers.

The good point to make with using loans to buy a car is that you have a few more options that depending on your circumstance could mean paying less each month. For starters you can choose between secured loans and unsecured personal loans. Secured loans will offer better interest rates due to them being insured against collateral like your home.

This doesn't mean that if you are renting or have no collateral that you will not be able to take out a loan, by taking out a personal loan, the ammount you will have to pay will vary from one person to the next. Your credit score weighs heavy on this decision as well as your employment and income evidence.

The final problem with buying cars is that car insurance is astronomical, especially for young drivers, you can forget getting a quote under ?1000 if you're under 25. The best advice is to not be tempted to take out insurance with the same bank that provides your loan, you are better getting insurance through a company that is well known for car insurance as they are more likely to quote you accurately.

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