Even a used car can make a severe dent in your bank balance, which is why many people opt to apply for a car loan to pay for their purchase. But quite apart from the fact that car finance enables you to keep your savings where they belong – namely in your pocket – it also has several other advantages over a cash transaction.
Firstly, it enables you to buy a better car than you could otherwise afford. Trying to save money by buying an older model can result in more costly repairs being needed, which all amounts to a false economy in the long run. Taking out a car loan also means you can spread the cost over a longer period of time, which in turn makes your car much easier to pay for – and you will always know where you stand with your monthly payments. You’ll also know exactly how long you’ll be paying the loan for until it’s completed.
If the car credit you get is either unsecured or secured on the car itself, it’s a very low risk option – much more attractive than a secured loan, which could put your home at risk should you default on payments.
Car finance is often also easier to successfully apply for than a standard bank loan. Many people who have bad credit problems are still able to get a car loan and if you are unable to buy a car in any other way then yes car credit could change your life. Becoming more mobile could enable you to apply for better jobs further afield, for example.
Another key benefit of opting for car credit to buy your new motor is that whatever APR you get, it will often be fixed for the length of the loan term. This takes away the worry of wondering how high your repayments could go if interest rates go up, as you will be unaffected. It means you can have more confidence in taking out this kind of loan than another loan which doesn’t have a fixed repayment amount each month.
Car credit is also better than a standard loan as it often comes with added perks. For example, if you buy your car from the same company that provides you with the loan, they may add in six month’s free road tax or a full vehicle inspection before you drive the car home. These give the loan added value that you wouldn’t be able to get elsewhere.
So if you are considering buying a new car, opting for car credit to make it possible could well be your best choice. Not only can it bring added benefits, but you’ll always know exactly where you stand.
Related Articles
How Some Loans Can Damage Your Credit Rating
By: Joseph Kenny | 01/08/2006 | Non-Fiction
There are many good reasons to get a loan. Unexpected expenses come up. People might find they have to plan and fund a wedding, refurbish their home or send a child to university. They might have to buy a new car or second home or they might want to start a small business.
What Is A Preapproved Auto Loan?
By: Joseph Kenny | 17/07/2007 | Non-Fiction
When you want to go and look for a good deal on a car, you want to go and get a preapproved auto loan. These auto loans will save you some time and money, partly because the auto dealer will be glad to see you already have the cash on hand.
Loan or Car Purchase Plan?
By: SimonDuffy | 07/04/2008 | Loans
I'm thinking of buying a car soon, not a brand new car but one that's maybe a few years old, so given the current financial climate should I get a personal loan?
What if your Credit is What if your Credit is Damaged by Natural Disaster? Disaster Versus Credit
By: Mary | 28/09/2007 | Credit
There are things we can't foresee and can't resist. In a natural disaster people lose their homes and money; they can't pay off their debts afterwards. Will your credit stay safe in a hurricane?
Do Auto Rewards Cards Help You Cut Your Costs?
By: Emily Goldstone | 29/08/2008 | Credit
If you are fed up by high car maintenance costs, think of aplying for a auto rewards credit card. Read what cards you can find on the modern credit card market.
Adjustable Rate Mortgages vs. Fixed Rate Mortgages
By: Joseph Kenny | 11/07/2006 | Finance
Buying a home can be an exciting and stressful time for anyone. While you may be excited at the prospect of owning your own home, especially if it is your first home purchase, the idea of choosing between all of the many different types of mortgages may leave you feeling confused and apprehensive.
Fixed Rate Mortgages - Know Your Rate!
By: Joseph Kenny | 02/06/2006 | Finance
Nothing is ever certain in the world of finances, and there's no way of predicting how the market will change in the future. However, if you want to be able to plan your budget precisely, then a fixed rate mortgage might be the right option.
Secured Or Unsecured Loans - Which Is Your Choice?
By: Joseph Kenny | 19/03/2008 | Loans
The two most well-known types of loan are an unsecured loan and a secured loan. These are two very different ways of obtaining credit, the big difference between the two is the rate of interest you will be charged. Unsecured loans typically have a higher rate of interest than secured loans.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by:
Latest Personal Finance Articles
Payday Loans: for the Borrowers With Immediate Needs
By: Scarlette Riley | 05/09/2008
Payday loans are unsecured loans. The loan amount is £100-£1500 for 14-30 days. The interest rate is charged for every £50 or £100. The borrowers should have a bank account and monthly salary should be £1000. Online lenders, financial and lending companies offer these loans.
Debt Management Failure: Going To Court
By: Hector Milla | 05/09/2008
What is the worst situation for a person that is trying to manage debt? Undoubtedly when all what you do did not work out and now you deal with your creditors in court, there is no debt management program that can assure you success and getting you debt free, you need to accept that sometimes it is too late and that you crossed line where some debt relief is possible.
Unsecured Credit Card Debt Consolidation Surprises
By: Mike Carter | 04/09/2008
While many consumers turn to consolidation to pay off unsecured credit card debt, very few are as informed about consolidation as they should be. These consumers are often surprised that the choices they made were not in their best interest and are costing them money. Learn how to avoid these debt consolidation surprises.
Financial Mistakes You May be Making
By: Steve Gillman | 04/09/2008
How many of these common financial mistakes are you making?
Debt Management Uk: One Stop Solution for Multiple Debts
By: Alec Recce | 04/09/2008
Debt management UK offers various financial solutions to debtors who are under pressure to repay the debts and are finding difficulty to pay them. It is for those UK residents who have debts with more than 2 creditors and over £8000 in debt. It usually merges all the unsecured loans into one loan, the repayment of which is easy and affordable to pay.
Be Closer to a Expert in Refinancing a Loan
By: Russ Bee | 03/09/2008
Refinance equity loans can be a challenge. This is a short value packed statement on what to know about different types of equity loans.
Auto Sales Statistics
By: MTnews | 03/09/2008
Daily Market Commentary for September 3, 2008 Written for day traders, active traders and investors. A review of the market activity for the day, economic data plus, world news from Millennium-Traders.Com
Answers To Your Private Student Loan Questions
By: Bill Miller | 03/09/2008
Private Student Loans are just one source of private funding for education. Here's the in's and out's of securing a private student loan.
More from Andrew Regan
Is Bulgaria the Best Property Investment in Europe?
By: Andrew Regan | 26/02/2008 | Real Estate
British investors are heading east to find the best property buys, and Bulgaria is proving to be massively popular, offering high capital growth and great rental returns; not to mention stunning alpine ski resorts and golden beaches.
London Gears Up for 15th Annual Jazz Festival
By: Andrew Regan | 26/02/2008 | Music
From small jazz clubs to concert halls, the London Jazz Festival has been at the forefront of presenting both home-grown and international talent at a variety of venues for 15 years; with this year’s event set to be the biggest yet.
Effective Guerrilla Marketing is Limited Only by Imagination
By: Andrew Regan | 26/02/2008 | Viral Marketing
Guerrilla marketing can be one of the most effective weapons in a company’s arsenal, and if deployed correctly can generate a massive impact that will lead to an increase in business.
Tips on Business Culture in Dubai
By: Andrew Regan | 21/02/2008 | Ask an Expert
Before going to Dubai on business, or indeed for pleasure, it is important that a visitor has an appreciation of the culture of the country, and that they do as little as possible to offend.
Lollapalooza Gets Set to Raise the Temperature This Summer
By: Andrew Regan | 21/02/2008 | Music
Since 1990, the Lollapalooza touring festival has been the United States’ finest proponent of cutting edge artists and ground breaking new alternative acts playing alongside musical legends, with the 2008 event scheduled to be no exception.
Plucky Pedro Put Benidorm on the Map
By: Andrew Regan | 21/02/2008 | Destinations
Before Benidorm could become a popular holiday destination young Pedro Zaragoza knew he would have to persuade Spanish Dictator General Franco to agree to overturn a ban on bikinis, so in 1953 he got on his bike and went to Madrid to address the General.
Celebrity Spotting in London
By: Andrew Regan | 21/02/2008 | Art and Entertainment
London, one of the world’s largest cities, proves a magnet to tourists and celebrities alike due to the sheer number of exciting activities and experiences to be enjoyed in England’s capital.
Formula One: From Humble Beginnings to Billion Dollar Business
By: Andrew Regan | 20/02/2008 | Cars
Since Formula One first sprouted its roots in the European Grand Prix Motor Racing of the 1920s and 30s, it has become one of the biggest and most expensive sports in the world.
Finance 
| Posted: 30-11-2007 | Comments: 
