Looking to buy a new car? This is a major financial decision to make and it is important that you get it right. In addition to choosing the right make and model, you will also need to think about the different options when it comes to financing the vehicle and there are a few good (with the right tech) options worth exploring.
Buying Outright
If you have enough money to do so, the simplest option is to buy the car outright. Obviously, this is a lot of money to part with and it can both be hard to afford as well as impact your financial situation in the short term, but this is actually a cheaper method overall as you do not have to worry about interest payments.
Hire Purchase
There are a few options when it comes to financing deals when buying a new car with hire purchase (HP) being one of the most common. Essentially, this involves the loan being secured against the car with a deposit of around 10% being made and then monthly payments made over an agreed term. The benefits of this are that they are easy to arrange, there is usually flexibility with the agreement and competitive interest rates. You do not technically own the car until the final payment is made, though, so this is a drawback for some.
Personal Contract Purchase
Personal contract purchase (PCP), meanwhile, involves a loan for the depreciation of the vehicle from brand new till the end of the agreement – this usually works out to more money being paid in total but lower monthly payments to HP. Additionally, there is flexibility at the end of the agreement in that you can then trade-in for a newer car, give the keys back and pay nothing or make a balloon payment and keep the vehicle.
Just Add Fuel
If you are looking for an easy option then Just Add Fuel insurance telematics could be for you. These deals see monthly payments include insurance, warranty, servicing, roadside assistance and road tax so that you only have to worry about adding fuel. This can make it easier to manage as an all-inclusive package and can save you a lot of time shopping around for insurance etc.
These are all good options for any motorist looking to buy a new car and it is worth spending time considering what the best option would be for your needs so that you can make the right decision.
Photo by Skitter Photo
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The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.
