Finding the Cash for a New Car

by : Andrew Regan

When it's time to buy a new car there are lots of questions to consider before you can actually drive one away.

Firstly you need to think about the type of car that's right for you. Do you need a bigger car than the one you currently have? Would you prefer a five door instead of a three door? Now is the time to work out the answers to these kinds of questions and get the car you really want.

Finding out what kind of car you need will give you a much better idea of how much money it will cost you to get it. You can then look at the different options you have available to you to make your car a reality. If you have a poor credit rating then checking out your options like this can go a long way towards choosing the best deal for you and your own personal circumstances.

The most obvious way to fund the purchase of a new car is to get a loan of some kind. The two basic types are secured and unsecured, and they both have their advantages and disadvantages. Generally speaking a secured loan will have a lower interest rate than an unsecured loan, but if you have poor credit then you may find it harder to get a competitive loan with a low interest rate in any event.

That's why it can pay dividends to go to a specialist company which provides both your new car and competitive car finance to go with it. This is because the loans they offer are generally secured against the actual car, rather than against something else that you currently own. Some secured loans use your property as collateral, which you may not want to do - and if you are a tenant this won't be possible anyway.

Furthermore if you do have a poor credit rating you are much more likely to get personal car finance with a dedicated car company than you might be with a standard bank. The important thing is to work out your sums before you buy the car you would like to get in order to ensure it is the best choice for you and that you can make the monthly repayments without any trouble.

Quite often people find themselves having to look for a new car very quickly, because their old one lets them down one too many times to be worth keeping any longer. This is where you need to know you can get the finance you need to get a new car straightaway, rather than having to wait for a bank to come to a decision.

Whatever kind of finance option you choose, make sure that you keep all the relevant paperwork in a safe place, together with your car documents. That way, if there is ever any need to refer back to them or find a piece of information, you'll know exactly where to look.