Car Loans…What Is The Best Option?
Over the course of the past couple of months, since the government launched the car scrappage scheme to try and help the motor industry in the UK, there have been a lot of advertisements from manufacturers offering various incentives for people to buy a new car, on top of the £2000 from the government.
These incentives may take the form of additional discounts, extra features on the vehicle, or the manufacturers own finance package or car loan. Whilst many people will not consider any other option than the dealers finance deal, there is a lot to be said for shopping around for an alternative car loan, which can give a buyer more choice and bargaining power, as well as saving them a significant amount of money over the term of the loan.
Since the credit crunch took its hold on the UK economy and loan market, it has become harder for institutions, as well as individuals, to obtain cheap loan options and the motor industry is no exception. Zero per cent loan options are becoming extremely rare these days and many car dealers will make more money on the sale of a car loan than they will on the actual car itself. But when you actually look at the rates which dealership car finance charges, this is often significantly more than that of an unsecured personal loan.
By sorting a suitable car loan out on a individual basis, before buying a car, the buyer has the money sat in his or her bank account prior to the purchase and therefore this in effect becomes a cash sale, giving the purchaser more choice between different manufacturers and the increased likelihood of further discounts on the eventual price of the car they choose, thereby not only saving money on the cost of the car loan, but also on the car itself. Consider the extra £2,000 from the government as an additional bonus!
