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Personal Loans and Car Finance for New and Used vehicles. Buying a car is probably one of the largest value items you will ever buy. Next to possibly your mortgage, the monthly payments to finance the vehicle will be your largest outgoing cost. It's very important to get the right finance package to meet your needs, but most importantly your budget. The golden rule is budget for what you can afford not for what you dream about and consider what length of time you will need the finance.Tesco Personal Loans are currently offering some of the best rates available. Visit the repayments calculator at http://www.tescofinance.com/personal/finance/finance/loans/repay_calc.jsp, check the repayments on your loan requirement and apply online. |
When looking at finance deals, be aware that, when buying a vehicle it is sometimes better to get the finance package elsewhere from the vehicle. This gives you better bargaining power at the dealer, since you are essentially a cash buyer. Also, 0% finance may look attractive. But are you paying more for the vehicle initially than you should be ?
Decide how long you wish to take the loan out for. The payments will be lower if a longer period is decided upon. But, for example, if you choose 60 months ie 5 years, think about how you will feel in 2 years time. 'Still paying the loan off on a car that is 2 years older, worth less, and there's still 3 years to pay'.
Ask what the APR of the finance is, you can use this to compare finance packages from banks and building societies or loan houses. The lower APR the less you pay.
Be careful when you sign up for a loan. Know the conditions ! If it is a secured loan, what are you securing ? Don't put your house up as security on a loan for a car. If it all goes pear shape you still need a roof over your head and you don't need a car ! If the lender has the facility for insuring the loan against losing your job etc. look into it. Don't dismiss this type of insurance without weighing up the pros and cons objectively.
Strike a balance. If you can't afford the payments:
DON'T TAKE THE FINANCE !
All of these things should be taken into consideration. Remember, it may sound like the deal of the century, but take a step back and think about it. The deal will, after all, still be there tomorrow.
