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If you’re in the market for a new car, you’ve got options when it comes to making your purchase. While you may choose to finance your vehicle in the traditional manner, you should know that that isn’t your only option. Before you step foot on a car lot, make sure you understand your choices when it comes to paying for your vehicle. Here are five ways that you can pay for your new car:
Cash in Full
If you’ve received a cash windfall or are able to set aside money each month, paying cash for your car is often the best option that there is. When you pay cash for a car, you not only save thousands of dollars that you would have paid in interest, but you can often haggle for a lower price. By paying cash, you’re saving the dealer a great deal of time on paperwork and will often knock a few thousand off of the sticker price in appreciation.
Lease
By leasing a car, you can enjoy a new vehicle every 24 to 36 months. This is a great option for people who don’t plan on keeping their vehicle for an extended period of time. People who are considering leasing should know that doing so will require at least a ten percent down payment, a limit on yearly mileage and that any damage done to the vehicle will have to be repaired before the lease contract expires.
Bank Financing
Bank financing is the way that most people purchase a new car. When you decide to finance your vehicle purchase through a bank, the larger down payment you offer, the lower your monthly payments will be. Additionally, any vehicle that you trade-in may be subtracted from the cost of the new vehicle. If you have a trade-in and a sizeable down payment, financing your purchase through a bank is one of the smarter choices.
Personal Loan
If you have excellent credit, you can often receive a better loan offer through your own financial institution. Whether you do your banking at a traditional bank or a credit union, you may be able to receive more favorable terms on a private loan than you would on a vehicle loan. If you’re in good standing with your bank and your credit score is high, a personal loan can be an excellent choice when it comes to financing your new car.
Contract Hire
Contract hires are an interesting way to secure a new vehicle without being tied into the car for several years. Contract hires are similar to leases in that you don’t own the vehicle outright. These types of loans are often cheaper than a lease because the end value of the car is not factored into your monthly payments. At the end of your contract, you can choose to pay a balloon payment to keep the vehicle or turn the vehicle in and purchase another.
If you want to have a new car parked in your driveway sooner rather than later, you have several different options when it comes to financing. Before you visit your local dealership, be sure to explore all of your options to make sure that you get the best deal possible.
Teri Gibson is a guest writer for ppiclaims.uk.com where you can find information on mortgages, interest rates and special financing savings.
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