A vehicle is, for a lot of people, one the biggest purchases they make. Unfortunately, as much as it would be nice to have the cash to buy cars or motorbikes outright, most of us need to rely on credit. Its the way the economy works these days, some debt is just unavoidable.
While its not advisable to put everything you buy on credit cards or take out loans just to go on holiday, some types of finance are more useful and less risky. Buying a car on finance, for example, can be a good investment because it allows you to get to work or look for jobs further afield. Having your own transportation is, for some people, just a necessity.
Car or motorbike finance from a reliable lender is less risky than personal loans or credit cards because the credit is secured on the vehicle. This means if you cant keep up repayments theyll repossess the car or bike, rather than coming for your house or furniture. Because of this, car and bike finance often have lower interest rates than personal loans, and can be available to more people.
Finance can be used to buy new or used vehicles, and many people arent aware that you dont actually have to use the finance plan that the dealership offers you. Getting a loan as you get the vehicle can be an uncomfortable experience as you wait to find out if youve been approved, and then have very little choice but to accept their terms and rates. It is possible to get a loan in advance though. If you go to a broker you can find out how much you can borrow first and then go and buy your vehicle, knowing youve already been approved for finance to buy your car. Car loan 4U and Bike Loan 4U offer this service to help you buy your vehicle, and price comparison sites can also help you find a good deal.
Doing it this way round means that youll feel more confident when you go to the dealership, because youre effectively shopping like a cash buyer. You know the money will be there to buy the vehicle. Youre in a stronger position to negotiate a good price, and a decent finance broker will also check the cars history and price for you to make sure its all ok.
