Buying a vehicle has never been so easy

Buying a car requires a lot of advance planning. If, as a consumer, you are aware of your budget limitations, everything is going well and you find your dream car within your desired budget, there is no better feeling. But you don’t have to give up your car because of limited financing options. There are many options to explore. These are only some of them.

• A personal loan: A personal loan is the cheapest way to buy a car. However, this means having a good credit score. If this need is met, any bank or financial lender will be able to grant a loan. Make sure valuable assets are not secured with this loan. This is an unnecessary risk.

• Cash purchase: Cash purchase is what it sounds like. This is where you pay cash for the purchase. This could come from a personal checking or savings account. This could also be due to money received through a settlement or even from a retirement account. The advantage here, of course, would be no debt and no increase in interest. A cash purchase is generally the least expensive way to go.

• Personal contract purchase: In this agreement the buyer makes lower monthly payments. However, the total cost reimbursed at the end of the period will be greater than the original cost. Here, unlike taking out a car equity loan, you can borrow for the face value of the car at the time of purchase versus the face value at the end of the term.

• Buying with a credit card: Buying with a credit card is the safest way to buy a car. This is because it comes with more security. As long as the payments are met, there will be no problems here.

• Leasing: The last option is to rent the car. The manufacturer is paid a monthly cost for the car, including maintenance costs. A mileage usage ceiling is decided. At the end of the lease period, the car is returned to the dealer. Ownership remains with the manufacturer. This option only makes sense for short-term requirements.

It’s always good to discuss financing options with car dealers and your bank before you buy a car. Always weigh all options before coming to a decision. This way, you’ll be armed with the best options available to you based on your specific situation.