Buying a car is a huge decision. You want one that is durable, will keep you safe, offer the latest technology and which looks good – all without having to fork out your entire life savings to afford it. Nowadays more than ever, budget restraints are as equally an important factor when shopping around for a vehicle. With 56% of people saying the credit crunch has impacted the way they approach buying a new mode of transport, just what are the best ways to buy a car when you want to save some hard earned cash?
Various types of car related finance are available to buyers. One of the most popular is a loan. You can get one of these from the likes of a bank or a specialist car financing company. They give you a lump sum of cash which you use to buy a car before paying the money back in monthly instalments – not forgetting the often hefty amount of interest they slap on top of it.
An alternate method which lets you avoid parting with a large amount of money in one move is hire purchase. You get the car upon paying a deposit. The rest of the price is paid in chunks on pre-scheduled monthly dates and once you have made the final payment, the car is yours.
If you think spreading the cost is the right way forward but want to keep monthly payments to a minimum, a personal contract purchase plan (PCP) is a great option. Instead of actually buying a car, you essentially pay for permission to use it for a certain length of time. At the end of the contract, you can either buy and own it outright, or give it back and get a new one. The great bonus of this method is that the lender will work out what the value of the car will be by the end of the contract and this amount (as well as your deposit) will be deducted from the amount you have to pay in your monthly instalments. This way, if you opt not to buy the car at the end of the contract, not only can you trade it in for a flashy newer model but you will have saved yourself an impressive wad of cash.
If you need the extra financial help but struggle to get banks and lenders to support you because of bad credit history and such like, companies like Car Finance 247 can give help and advice while working to find alternative ways of funding your new car that you may have missed.
Doing your homework can make all the difference. Keep your eyes peeled at local garages, in newspapers and online; you can find some really great bargains lurking in the shadows. Buying a car privately (particularly a used one) will often save you a lot of money and you will have a much better chance of putting your haggling skills to use to drive down the price even further. Having an idea of how much your prospective new car would cost to insure is another thing to watch out for. The last thing you want is to drive off in your beautiful new ride only to be hit with a massive unexpected insurance charge.
Cars are a really important part of everyday life and being on a tight budget does not mean you cannot afford one. Finding the right vehicle and method of payment that will work for you can go a long way to helping you get your hands on your new car much quicker than you had perhaps thought would be possible.