Top 5 Ways in Getting the Best Car Financing Deal

by : Mark Robinson

Buying a car also takes a lot of time and energy for you to really get the best out of your hard-earned money. The best, and probably hassle-free, process of purchasing a car is through paying it in cash - that is, if you have it available right out of your pocket right at of this moment. If not, then you'll have to settle and look for financing.

There are a lot of financing deals available that is right at your picking. But you might want to know the top five best ways to getting a car financing deal. Here they are:

1. Obtain a loan online. With online lending companies, you could find the lowest interest rates. The operation of an online company permits them to have lesser personnel; thus, they had the better position to offer the lowest interest rate to their customers.

2. Apply for a loan through a credit union. If you happen to be a member of a credit union, then getting financed through this organization is wise. Credit unions are non-profit organizations that offer highly competitive interest rates to their members. They offer the rates that are far lower than you could get from a bank or any other financial institution.

3. Go to a bank and submit a personal loan application. Your bank is a good alternative in obtaining a car loan. Having a savings or checking account with the bank is far easier for a car loan. It is very convenient to have a loan from the bank where your account is situated. There is the familiarity since you already had years of business relationship with them, so you already had known of its reputation compared with an unknown lending institution. Banks auto loans also offer lower interest rates than dealer loans.

4. Get a hire purchase loan. This is a dealer loan. Most car dealers would want you to have this kind of financing. This is easier to arrange since the dealer would get a commission from the lending company. Moreover, with it, you could get a better deal. The hire purchase loan works by securing the amount on the car. You'll have to pay all the repayments to fully own the car. Failure to pay the repayments could result to the repossession of the car.

5. Get yourself a personal contract hire loan. It is also called car leasing. With this, an agreed deposit would be made about two to three months of the repayment. A monthly repayment would then be paid, which would take about two to three years. In this period, the dealer remains the owner of the car. An option will be given to you to pay the final payment for you to own it or you could just return the car.

You see, there a lot of options that are given for you to really choose the best financing on your car. Check out for convenience, lower interest rates, and your credit standing to see if you really could qualify to avail of any of these loans.