Tips
Looking for finance to purchase your car?
If you’re looking for finance to purchase a car or van for personal use or for your business, there are many options to look at when it comes to funding the transaction. These can vary greatly depending on whether you are seeking personal or business finance but what are your options here and what are the key differences?
If you are seeking to purchase your car as an individual, there are fewer options for car finance than there would be if you were approaching this as a business but you still have a choice.
In the first place, there is the traditional personal loan from a high street bank or from an Internet provider. If you are looking to purchase a car or van by this method, it’s important to remember the basics such as checking the APR to find the best deal and to make sure that you are honest when you give your information, particularly if you have a less than perfect credit history. Being upfront at the start of a loan enquiry will solve any potential problems down the line and it won’t necessarily mean that you can’t get the best deal.
Another alternative when it comes to financing your car is to use a credit card. This will, of course, depend on the purchase price of the vehicle itself and whether you have enough available credit but some buyers prefer this method because it gives them more flexibility in terms of paying the money back. One disadvantage of this is the fact that if you are only paying off the minimum balance every month, you will be paying much more for the vehicle in the long term. So, whilst the finance options for the individual may be more limited, there is still a choice when it comes to funding your car purchase.
As a business you have many more options and if you want to buy a car outright, you could consider a business loan from your banking provider. This can often be the simplest way of getting the finance needed but it may not always be the most cost effective and if you already have a business bank account, you may not be in a good position to shop around. This is because you are at liberty to obtain business loan quotes from many banks but they may stipulate that you switch your account to them before they lend you the money.
A popular option for any business is contract leasing and this is where you effectively hire a vehicle for a set period of time and for a set mileage allowance before returning it at the end of the contract. This is popular because it gives businesses more flexibility but in general, you can only obtain this with proof of two years of satisfactory accounts.
Another option here is contract purchase where the car ultimately becomes yours and this is also popular although some companies may prefer the chance to change their vehicle at the end of a contract.
So, if you’re looking through http://www.netcars.com/ for any vehicle, you have many options for financing the purchase and whether you are a business or an individual, there are several choices to help you secure the right vehicle.
