So you’re wondering how to buy a new car without putting a strain on your monthly budget? There are a number of finance options out there, but today we’re breaking down 5 of the best ways to finance a new or used car so you can decide on the best option for you.
Cash
This is the most obvious and straightforward way to purchase a car, and it’s also the cheapest option in the long term because you don’t need to pay any interest or lender fees. It’s also the fastest way to get a car, and you can keep your budget under control because if you spend all of your savings on one car, then that could be difficult to manage in future months.
Secured car loan
As the name suggests, a secured car loan involves taking out finance against your car. You’ll use your new car as collateral against the loan, and will therefore be able to access lower interest rates. You can also get more money for a car with a higher value, so if you have something particularly valuable, this could be the best way to finance your car.
Dealer finance
If you’re looking to buy from one particular dealership then they might offer finance options that work well for you. The benefit of dealer finance is that it often includes perks like free servicing or even free insurance for up to a certain amount. These perks could end up saving you money in the long run, which is why it’s always worth enquiring about finance options at your chosen dealership.
Personal loan
Auto dealerships often partner with other companies to provide certain services, and one of these is personal loans. Personal loan providers are committed to making finance options more accessible, which means you might be able to borrow more money for a car of higher value. It’s worth noting that personal loans aren’t always available on new cars, but they are worth researching if you’re interested in financing your vehicle.
Leasing
This type of finance is actually an agreement between you and the leasing company. You get to use the car for a set period of time, then return it at the end of that term. The great thing about leasing is that there are no monthly repayments, which means you’ll be free from worry when your lease comes to an end. However, bear in mind that there are strict rules about what you can and cannot do with the car during that contracted time, so it’s important to read through all of the legal documentation before you sign.
So there you have it, our top 5 ways to finance your next car. No matter which finance option you go with, it’s important to make sure you take the time to do your research. With Driva car finance, you can easily compare all your best eligible loan options or obtain car loan refinancing in one place, whilst ensuring that you’re getting the best deal possible.
