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3 Different Ways You Can Finance Your New Car!

On Wednesday, October 28th, 2015

It’s that time again, time for you to buy a new car! You’ve been thinking about this for a while, staring at images of cars in magazines, but now it’s time. The main thing to consider when buying a car is how you’re going to pay for it. So, check out three ways you can finance your car:

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Car Loans!

A common way of financing a car is by getting a car loan. These are loans specifically designed to be used to help you purchase a car. There are a couple of ways you can secure a car loan. The first option is to go to your bank and apply for one. This could take a while, as the bank needs time to process your application and then give you your loan. The other option is to get a loan directly from a car dealer. Many people will choose to do this because it’s less hassle. The trouble is, car dealers will charge you much higher interest rates. So, getting a loan from a dealer could end up making your car cost a lot more than if you went to a bank. My advice is to apply for a loan at your bank before you start looking at cars. Only when the loan is approved should you start shopping for your new vehicle. This way, you’ll have the money in your pocket and ready to use when you find the car of your dreams.

Car Leasing!

Car leasing is very similar to renting. You’re pretty much renting a car for a long period of time. It’s a very popular finance option among people who are looking for a new car. This is because it can be a lot easier on their personal finances. You won’t have to take out a loan or spend a lot of money all in one go. You just agree on a fixed sum to pay every month, for the amount of time you want the car. Anyone that’s leased something before will know you have to have your credit evaluated. It’s no different when buying a car. However, there is bad credit car leasing available to help those with a poor credit score. Leasing will also take away a lot of the pain that comes with selling a car. Once you’ve finished with the car you lease, the dealer just takes it back, and you don’t have to worry about it.

Your Money!

The final finance option is simple, pay for a car with your cash! Don’t take out a loan or lease a vehicle, pay the whole sum all in one go. This is an option that some people choose to take, it all depends on how much your car is and how much money you have! If you can afford to buy a car outright, I’d suggest you do it. If you know it won’t be a burden on your finances, it’s worth doing. It’s easier to pay for a car using your cash if you buy second hand because they tend to be cheaper. I’d say it’s normally only the very wealthy that buy brand new cars with their cash all in one go.

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