With the “63” number plates about to be released in September you might be thinking of buying a new car because at this time of the year there can be some bargains to be had. Dealers like to rid their forecourt of older models in favour of being able to show the latest brand new cars so they can ride the wave of enthusiasm for new plate cars as soon as they become available.
So what options do you have available to you if you want to buy a car but you can’t pay cash?
Car dealer finance – This is a popular way to get yourself a car quickly because once you have found a car you like at the dealership, they will arrange the finance for you on your behalf. Often there are can be 0% interest rate deals available over 2 or 3 year repayment periods, but as is always the case it is important to check the APR on any credit arrangement.
Personal contract leasing – This type of finance applies to new car models and allows the customer to upgrade to a new lease deal every few years. Maintenance is included within the monthly lease fees but on the downside you will not actually own the car at the end of the contract unless you pay the buyout fee and you have to stick to the pre-agreed mileage limits otherwise you will be subject to extra mileage fees.
Credit cards – There are currently credit cards that offer 0% interest on purchases for the first 18 months so depending on your financial circumstances and the cost of the car, using a credit card with a long purchase offer might mean that you could buy a car on credit without having to pay any interest whatsoever.
Personal loan – There are a wide variety of personal loans available from all of the main high street banks and building societies so there is a lot of options to choose from. If you are buying a second hand car bear in mind that personal bank loans can take time for you to become accepted so if you see a car that you like you run the risk of someone else coming along and buying the car before you if your loan has not already been put in place. This is why some people like to set a budget first and get a loan accept for that amount and then go car hunting, or alternatively go for a specific car finance deal direct at the dealership.