Covoiturage and Autocar Information

Archive for the ‘Car Finance’ Category

Children, cars and houses; all expensive items to keep and run.  While there is not (normally) a purchase price on kids the running costs make up for that fact.  You could be forgiven for feeling the need to take out a personal loan to fund them and let’s face it, whose going to repossess them if did?  However, when it comes to homes, most of us do purchase with a loan and likewise car finance is still popular with the UK population, despite the national belt-tightening exercise of the last few years.  The problem facing many of us at the moment is whether we should or shouldn’t take on more debt – especially when purchasing a car which will depreciate over time.  Car finance can, surprisingly offer a sensible way to purchase a new or second hand car and may be the best solution for most people.

Saving your savings

Interest rates are about as low as they can go at the moment – though predictions suggest they will have to rise soon.  If you have savings that are under-performing it can be tempting to dip into them to fund that new car.  Not necessarily the best option though, while interest rates languish in the Bank of England’s dungeon it may seem attractive – but good times will be on the way for savers in the not too distant future as inflation makes the current stagnation untenable.  Plundering the family silver is never good – even if it’s seems like all it does is sit there and tarnish.  A car is not exactly an investment; and as the value of cars goes down and rarely up, using savings is just about the worst approach to funding a new one.

Efficiency savings

Buying a new car can offer some savings during the lifetime of the vehicle.  The newest cars with the best technology are highly fuel efficient – hybrids that re-coup energy by various clever technical wheezes can have a serious impact on the cost of fuel.  Additionally new cars are less temperamental and are not prone to sulkily grinding to a halt halfway home – leaving you to anticipate the drain on your bank balance while you await rescue.  If you’ve skimped on breakdown cover the cost is likely to be even more damaging.

Options for financing a car

Car finance can offer the chance to buy a better car than you might normally be able to afford.  Compare the options for finance, dealership offers, personal loans and brokers.  Avoid using the credit card and extending the mortgage – remember interest rates are set to rise – and spend a little time researching the actual costs of any loans deals you can find.  Paying for the car on finance offers the chance to break the payments into manageable chunks – and buying the most modern car you can afford in this way can often save on fuel and repair bills. Whilst everybody is rightly concerned about taking on further commitments at the moment, car finance is one option that can be cost effective in the longer term.