How To Buy A Car: PCP? Loan? Hire Purchase?

How To Buy A Car: PCP? Loan? Hire Purchase?


buying a car means passing with a
shedload of cash but paying in the right way could mean your new set of wheels
ends up costing you a whole lot less I’m going to teach you the best way to pay
for a new car whether you’re buying brand new or used you can get a
breakdown of the pros and cons of what I’m about to explain and the link below if you’ve got cash to see in the savings
account you haven’t earmarked for something specific because you work
while using it pays for at least part of your new car the more you can put down
as cash the better the bargaining power that you’ve got rid of dealerships you
can and should use this to negotiate down the price right now it’s doubly
worth looking at savings rather than borrowing because interest rates on
savings accounts are so very low they’re actually likely to be leaving me buying
power over time sit inspected to use that money somewhere else but don’t make
the mistake of paying for your whole car with cash though you should say at least
a pound on your credit card for the UK section 75 protection and that means
your credit card company is jointly responsible for the purchase and they
have to put something right if something goes wrong with your car if you’d be
used cashing and saving just make sure that you don’t leave yourself without an
emergency fund and after otherwise we won’t have
anything to fall back on if you get an unexpected bill if you need to borrow a
cash to pay for your new car then don’t make the mistake of going with a deal
off the to you by your dealerships without shopping around first they’re
unlikely to be the cheapest and Commission to what they offer without
comparing your options could mean your new car for 200 it’s not thousands of
pounds more instead you need to figure out three things firstly how much do you
actually need to borrow secondly how much can you pay back a month and
thirdly how long do you need to borrow for once you’ve got the confirmation you
should start comparing your options it’s what they are firstly the personal loan
could be a brilliant way to borrow because rates are so cheap at the moment
and you can get your hands on the cash you need quickly without paying back a
whole lot of interest you’ll also have the certainty of owning your car
outright and I have
repayment plans that spread the cost over the fixed period what you paid the
loan off the car is yours forever secondly a credit card can be a really
good way to pay for at least part of your car especially if you want
flexibility either get an or percent purchase card make an or pretend money
transfer which music us to your bank accounts or pay on a raw reward credit
card and get the cash back as purse just make sure you pay it back as soon as
possible thereafter so you’re not still paying back the balance when you’re
going to be charged interest 13 higher purchase plans can be worth checking out
if you don’t have a lot of cash to commit out front
the downside is you don’t actually own your car until the whole balance is
repaid which isn’t great the dealership is likely to offer you one of these that
don’t commit before you shop around if independent car finance plan can also be
a lot cheaper falsely personal contract plans or pgps are really popular but
they aren’t generally the best way to pay because you don’t actually use and
own the car by the end of them you pay the project and then six monthly
payments tituba for you and you don’t have the option of either giving the car
back all paying off the big balance at the end it’s so easily to get sucked
into a cycle of automatically upgrading off your PC’s new contract comes to an
end but it’s actually a really expensive way to pay and you don’t end up owning
your car at any point which is the best option for you depends on how much you
need to borrow and how long you need to pay it back over go for the option the
works out cheapest and means you actually own your car at the end of the
term otherwise essentially you’re paying money for nothing your credit rating
will also have an impact on the amount you’re charged in check whichever option
you go for so make sure you check out the link below for a step-by-step guide
on how to make it better so that’s how you can work out the best way to Pei
Xian your car thanks for watching I think page helps you save a bundle so
please like and share the video if you put any questions comment below and I’ll
do my best to help happy driving

About the Author: Michael Flood

3 Comments

  1. This is a very one sided point of view as you are not actually telling people that they have full protection from Dealer Finance such as the CCD Consumer Credit Directive and also that personal loan companies such as Sainsbury's or Tesco will sell all the information to third parties so the customer will be bombarded with phone calls emails and letters trying to sell them other products that the customer may not even need were as dealer finance companies do not plus that only 51% of accepted customers will actually ever get the rate stated on there advertisement and also depends on how much you borrow how long you want to borrow it and in some instances imply that you can't have our low rate unless you have a product already with us such as a club card or points card again so they can harass the customer with other selling opportunities. Such as a credit card the customer has full protection with dealer finance also and have the back up if anything went wrong with them. I'm sorry to put such a long winded message but if you are going to give all the bad bits to dealer and good bits to a unsecured, time consuming loan such as a personal loan were the customer has actually got less rights and protection if for any reason they were to fall on hard times or something went wrong then someone has to say it. I agree do your research who ever reads this but find out what your terms and conditions are first what rights you have and who will fight your corner if something ever went wrong not just all be about price.

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