Always check three things with any finance deal:
Firstly you should try and put as much of a deposit
down from exitsing savings as possibe. The interest
you get on your money is always likley to be less
than the interest your will have tp pay on a loan
or finance repayment.
Always know your budget and don't get caught out
when the car salesman suggests that you pay the
loan back over a longer period of time. I you are
buying a 5 year old car with a 48 month repayment.
The vehicle is going to be 9 years old when its
paid for. If you are liklely to want to sell the
vehicle before you have finished paying for it you
should consider personal loans. Hire Purchase can
be very expensive if you pay it off early and take
out another loan.
Calculate how much are the monthly payments and
any additional payments at the end or start of the
Work out how much interest are you paying in total
and over what period.
What are the options and penalties if you want
or need to come out of the deal
Remember there are other ways to finace the purchase
of a new car. Often these can be cheaper.
You may be able to add the cost to your mortgage
which is generally cheaper. However, remember that
this will be secured on your home.
Personal Loans - sometimes these can offer better
value and these do not have to be redeamed when
you sell the car
- Savings - if you have savings you should consider
using these before borrowing money.
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