Wednesday , 24 July 2024

5 Ways To Finance the Purchase Of Your Next Vehicle

Are you planning to buy a vehicle and looking at different ways to finance that…[purchase]? Here are 5 ways that can help you out…

1. Buy All Out With Cash

…If you have the cash to buy out a vehicle, your best bet is to do so. It saves you from paying interest every month. Even if you don’t have enough to cover the entire cost, putting a chunk down as you would with a house down payment will help lower your loan amount. Make sure you don’t use your entire savings and have nothing left over.

2. Get a Personal Loan

…You can get a personal loan from a bank or another financial provider, but only if you have a good credit score…Be careful as to what you use as collateral, however, because if you default on your loan, whatever you attach that loan to is now at risk for repossession.

3. Hire Purchase Financing

…Hire purchasing is almost like renting to own the vehicle. You must pay a deposit, typically around 10 percent of the purchase price. You then have fixed monthly payments that you pay over an agreed upon time. This type of financing option is done directly through the dealership, so it’s usually a convenient option for many. It also helps to make the competition work in your favour if you’re looking at a new car.

4. Use a Credit Card

…Using your credit card to finance the purchase of a vehicle is another, albeit much more expensive way…If you don’t have the money to pay for the vehicle at the moment, but know that you will in the near future, this is an option to consider. Pay attention to any additional fees the dealership may charge for using a credit card though.

5. Car Title Loan

If you require a quick approval loan and for a short amount of time, then a car title loan may be an option. These loans use your vehicle as collateral. You would give the title of the car to the lender until you’ve paid off the loan completely. Use this loan option as you would with your credit card, only if you know you’ll have the money to pay it in the near future. Defaulting on this loan means you’ll lose the car you’ve been working to pay off. Take a look at a directory of online title lenders to see what works for you.

Editor’s Note: The above excerpts* from the original article have been edited ([ ]) and abridged (…) for the sake of clarity and brevity. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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(*The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)