<p style="text-align: justify">Whether it is because you need a new car, or getting one for a family member, buying a new car can be the next expensive purchase after you have bought a home. There are many things you need to consider in advance, such as running and maintenance cost, insurance and, most importantly, how you will get the finances for it. The most common way to buy a car is through a franchised dealership. It can be a straightforward process as the car is brand new and has had thorough inspections done to make sure there are no problems. This can be a relatively expensive process compared to cheaper deals at a used car dealership, but there are other difficulties you can run into. Regardless of where you decide to get it from, you still need to know how to properly finance one. Below are some suggestions that you might want to consider.</p>
<h2 style="text-align: justify"><strong>Cash or credit?</strong></h2>
<p style="text-align: justify">Perhaps the cheaper option to buying a car, as it does not involve interest like when you use credit or loans (loans will be discussed further on). Using cash can be a straightforward process to buy a car, provided you have the funds. If you do not have enough to complete the transaction, cash can be used as a deposit and a card may cover the rest. Credit cards can also come with 0% interest period which will allow you to split the payments over a certain length of time before the interest free period ends. An advantage to this is that in the event of fraud or something happening to the car, your purchase is still secure through credit card protection. Most dealerships offer financial options to aid in the purchase process if cash or credit cannot cover it.</p>
<h2 style="text-align: justify"><strong>Hire purchase</strong></h2>
<p style="text-align: justify">Hire purchase is a form of buying a car when you pay in instalments. The payments are spread over 12-30 months and in most cases you need to put down a 10% deposit. This process is arranged by the car dealer and can be very competitive when it comes to new cars. The form of payment has its pros and cons, one of the disadvantages being that you do not own the car until the final payment is made. However, it is a quick and easy process with quite flexible payment terms.</p>
<h2 style="text-align: justify"><strong>Personal loans</strong></h2>
<p style="text-align: justify">Loans can be obtained from a bank, building society or finance provider, with the option of a secured or unsecured loan. A secured loan is where the lender will take an asset or property against the loan, in the event of you being unable to manage payments. An unsecured loan means that the lender is relying on you to be able to handle regular monthly payments. This is the most common finance option to purchase a car. In some cases, if you have bad credit history, certain lenders will refuse to offer you credit, but there are finance brokers who can help build your credit history with a range of financial products aimed at improving your credit score. Some companies will even help you find the best loan in terms of interest (APR).Whatever option you choose to finance a new car, remember that you should shop around to find the best deal. Each dealership will provide a range of discounts and offers that can benefit you. In any event, consider each finance option carefully and pick one that is ideal for your current circumstances.</p>
<p style="text-align: justify">Bill Turner is a freelance writer who enjoys travelling with his family and researching his favourite topic, latest mobile technologies.</p>

A Quick Guide To Financing A Car
