Tuesday June 28th, 2011 23:03 Funding your dream car with car finance

Some purchases in life are essential and cars are one of them.  While nobody is keen to take on debt at the moment, funding a new car with finance can be a surprisingly effective way to save in the long term.  If the choice is between a car that will ‘do’ or your dream car, considering finance to extend your budget may not be as daft as it sounds! So what are the benefits?

Taking on the salesmen

Car dealerships have had it rough for the last few years, the credit crunch has hit them badly and manufacturers are keen to see the market moving again.  This means deals, deals, deals.  It also means extras, upgrades and all manner of goodies.  Using a specialist car finance firm as opposed to dealership finance can put you in the enviable position of being a ‘cash buyer’.  From this lofty position it’s possible to haggle even the most hardened car salesman into the ground.  While offers and extras will be included with finance direct from the dealership, loans from specialist lenders can open far more freebies.

Future proofing

Whatever model your dream car is, the latest model will come with a range of fuel efficiency measures.  This can have a big impact on running costs and the savings will add up over time.  These savings can actually offset the cost of buying on finance, so if you’re nervous of taking out a loan it’s one of the hidden factors to consider thoroughly.  Second hand dream cars are just as prone to sudden and expensive breakdowns as second hand ‘make do’ cars.  New models will not only be more reliable but will have plenty of warranties to cover any problems that do occur.

The types of finance

There are a few routes to consider when buying using finance.  As mentioned, the traditional dealership route is still popular, but to find the best deal from a range of dealers you’ll spend a lot of time checking finance offers and less checking out the cars themselves.  Specialist providers have come into their own in the last few years; and there are plenty that will offer a fast decision online.  This gives you the freedom to shop around and haggle.  Alternatively there are personal loans from banks, although these are harder to get these days, however good your credit rating.  Whichever route you choose the key is to shop around.  Finding a broker that compares a wide range of loans is always worthwhile.  Financially this may not seem like the time to splash out on a dream car; however, the savings that it can offer in the future make it a surprisingly attractive option.

Author Bio:  Buying your dream with car finance can be a surprisingly cost effective method.  With potential savings on fuel and maintenance adding up, the cost of finance may be lower than you think.

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