Gentlemen, are you getting excited by the prospect of picking up a new car? Have you been trawling through manufacturer brochures and spending your weekends in motor dealerships? If so, then now could be the time to make your decision on what car to buy. However, there is another, probably more important, decision to make with regards to getting a new car, and that is how to pay for it! We run through the three ways that you can buy a car, today.
Paying for a car outright obviously has its advantages. Once you’ve slapped down the cash, there are no monthly repayments to think about or a rising interest rate to contend with. However, not everybody has that sort of money to splash out on a brand new car with. For many, affording a deposit is enough of a struggle. So, unless you find yourself in an incredibly wealthy position, then this one may not be for you. That said, if you can afford to buy a car outright, then this opens up a range of supercars that may have previously been unobtainable to you. It’s a nice thought to think that once you’ve paid the money, nothing else is hanging over you. That said, your car will lose thousands off of its value as soon as you drive it off the forecourt, so be wary. Nonetheless, this is a very stress-free and sensible way to buy a car – if you can afford it that is.
If your budget is a bit tight, then this could be a great way to get hold of a car that you wouldn’t normally be able to buy outright. By buying on finance, you only need to be able to afford the deposit upfront and then smaller monthly repayments until the vehicle is paid off. However, like when you buy a car outright, it is yours from the moment you put the deposit down. If you’re after a Volkswagen Polo, for example, then head over to Volkswagen Finance to see what packages they offer. Be wary, however, if you are failing to keep up with your repayments each month, then your car could be repossessed. By buying on finance, you will end up paying more than you would have done if you had bought it outright. However, this makes paying for it a big more manageable, despite how high the interest rate may be.
Finally, you have the option of leasing the car. There are lots of advantages to leasing! This works in a similar way to buying a car on finance, however, the costs are much less. Great! However, there are some things you need to consider. The car will not be your own for the duration of the lease period. It’s as if you’re loaning it out for a fee. Your deposit at the start of the period will be relatively small, giving greater access to car buyers with smaller budgets. Furthermore, the monthly repayments will be less than that of a car on finance. However, at the end of the leasing term, you will have the option to buy the remainder of the car outright at a heavily discounted rate. Only then, will the car become yours.
Hopefully, this guide has explained the advantage to each buying method and has encouraged you to crack on and pick up a new ride! If you need more helping with buying a new car, check out our complete guide.