Buying a brand new car is a luxury not everyone can afford, but there are now more options available to you than ever before.
The car industry is struggling with fewer people willing to part with their hard-earned cash to buy a car. Figures from the AA show a 45 per cent drop in 2017, which is up from 33 per cent last year and doubled from 24 per cent in 2009. Although loans and finance are cheaper than ever, because of the low return on savings, many people are opting to use their own cash to buy a new car rather than resorting to credit.
Finance deals quite often seem rather complex, and this can put a lot of people off this option, but if you shop around there are good deals to be found. Some dealers have option packages where you can change the contract as you go along. Negotiate hard, however, because car dealers are desperate to make deals, so the ball is in your court. There are deals where you pay interest only over a two-year period. At the end of this time you can either give the car back or make a one-off payment and keep it. Dealer finance is normally similar to a personal loan and is tied to a bank, such as Barclays or Santander, where the interest is negotiated between the car dealer and the customer.
Leasing a car is a popular option if you don’t want to own the car. With a car lease deal you pay a monthly amount over a number of years and then take the car back at the end of this period. You can then just start over with another new car. With this option the mileage is often taken into account. At the start of the lease a mileage figure is set for the length of the lease, and if you go over this figure an extra charge will be incurred. Car leasing is available all over the UK – for example, for vehicle leasing in Leicester you can contact http://leasing.totalmotion.co.uk/.
Personal loans now have the lowest interest rates for decades. This is, therefore, an option you should seriously consider with loans available for up to five years at rates as low as five per cent.