Financing Your Used Car

by  |  On November 28th, 2012  |  In Car Articles

When buying a used car you’ll more than likely have to think about what method you’ll use to finance it. If you choose a less expensive car you probably won’t have to worry about coming up with deposits or monthly payments, however if you’re willing to pay a bit more for your used car you may want to think about choosing a reputable finance plan. If you choose to buy your used car from a dealer, they’ll probably offer you one of their own financing options. Any reputable car shop will have a range of plans available, and will be flexible on terms. However, depending on your circumstances, you may want to shop around to find the best financing plan to suit you.

by Ian Fuller

A Few Financial Options:

  • A Personal Loan: Ideal for those with a good credit rating
  • Credit Card: A good option for people with the discipline to stick to the monthly re-payments
  • Mortgage: Best for those who are looking to make low payments over a long period of time, however risky if you find yourself struggling to make the payments on time
  • Dealer Financing: As long as you get all the details upfront, this can be a quick, easy financing option, and resources are available to help you make the best decision

How to Find the Best Financial Deal

With so many options available, the most important thing to remember is to shop around, and to always negotiate. Financing options, whether hire purchase or a personal loan, can often involve you paying for your car for a long period of time, so always make sure you’ll be able to keep up with your monthly payments. Additionally, the amount of interest you’ll end up paying will be directly linked to how long your repayment period will last. Sometimes it’s best to make slightly higher payments for a shorter period of time. Working out your financing options well in advance of purchasing your vehicle will ensure that you don’t make any costly mistakes when it comes to getting the best financial deal to suit you.

Check the Fine Print

This detail is one that is often overlooked, but always read the fine print attached to your financing plan before you sign! There may be hidden costs involved in your option, such as administration fees and the possible consequences of not keeping up with your payments. Often, contained within the fine print are the total costs which, if you read them carefully, can give you the best indication as to how much you’ll be paying in total for your car, and for how long.

Jyotsna Ramani is a passionate writer and an avid globetrotter. She had a knack for writing since her early years, though that was mostly letters to her penpals and jotting her thoughts down in her "Dear Diary". Over the years, she realized how her hobby could turn into a full time career and she started writing web content, books and pieces for local magazines. There has been no looking back ever since.

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