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Financing a car infographic

A car is an important part of our everyday lives, it helps us to get around, to travel to work, shop and take our children to school. However, cars can be expensive, particularly if you are looking for one to invest in for the long term.

There is a good chance that you won’t have money lying around to buy one, so how do you go about financing a car? We have put together some of the best options for financing a car that you can consider.

Financing a car Infographic

Personal Loan

One of the most popular methods of raising finance for a car is a loan from a lender such as HSBC or any other bank. These loans allow you to pay off the loan over a longer term and they are often available at a great rate. The only thing to remember is that you will have to make those payments off each and every month, else you may find that it has an impact on your credit rating and you also need to take the time to shop around and make sure that you are going to get the very best rate for your loan.

Car finance

Another popular way to finance a car is to take out personal contract finance. These plans come in a variety of forms and give you a number of options. You can choose a period of time to “hire” your car over, often 3 years. After these 3 years you can either choose to buy your car using a lump sum, taking into account the money that you have already paid off on a monthly basis. Or you could give your car back. You could also choose a brand new car and then begin another contract finance agreement which will continue for another 3 years or period of time.

Hire car with a view to buy

Hiring a car essentially means that you are borrowing it for a period of time. However, you do have to hand the car back over at the end of the period. There are some hire agreements out there that allow you to make a purchase of the car that you have been hiring at the end of the contract, paying a lump sum. You will often need to pay a deposit for the car at the start of the contract too. The great thing about this particular approach is that it allows you to make sure that the car of your choice is actually going to be right for you.

As you can see, there’re a number of choices when it comes to financing a car. Whether it is a little run around to get you from a to b, a family car that can safely transport you and your brood, or perhaps a treat that you have been looking forward to for a number of years. You can always find a way to afford that new ride!

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