Various car financing options
by JAYDEN JETHRO
There are many financing options in UK to back up your car purchasing, regardless of whether you prefer a new car or a used car. The buyer is supposed to go through and understand different finance options and find the one that suits you the best. Car financing is not an affair limited to just car dealers. Nowadays, financial companies too offer economical loan options.
If you would like to buy from a dealer directly, you should buy the particular car the dealer is selling. But if you have a dream car, you should go in search of a dealer who sells that car. For wide selection of cars and finance options, finance companies are there for you. There are different types of car finance. One among them is hire purchase which allows the repayment of the loan amount equally over the entire loan period. The dealer or the lender will be the owner of the car until the amount is completely repaid. That is, the buyer would be the owner of the car only after the loan repayment. Another option is that of the personal loan. But personal loans impose higher rates of interest and monthly installments. Personal contract plan is yet another option. In this option, the monthly installment and rates of interest will be low. But this implies a large lump sum payment in the beginning. You can mortgage your house against your car. But the main thing to be noted in this option is that repayment failure will make you lose both your car and home. So be very analytical before committing such a deal. Yet another option is bank financing. What matters here is your good credit history alone. But this does not imply that you should have an extremely outstanding credit history. But you need to mend major credit flaws. Professional acquaintances like working along with a bank make it easier for you to obtain a loan. A car dealer may lure you with low interest rates. But keep this in mind that if you have a good credit history, a bank will be the best option that you can find for yourself. Credit union financing too is there. But you are not eligible to get this option if you belong to any credit union. But it��s good to have a credit union membership for the amount available to you may be much better than what you can obtain through a bank or dealership.
Though a bit risky, borrowing funds from a family friend too remains there as an option. The risk is there that when you find it difficult to raise the repayment amounts; you are likely to loose your relationship too. But so far as other options remain a mere mirage for you, this kind of lending too is advisable.
Online lending option too has come to occupy the status of a never before popularity. Anyways, there are myriad car financing options in the UK. You just have to take a decision regarding your car and car financing option.
