How to finance a new car purchase

For many people, a car is the second most expensive purchase they will make after buying a property. Why not consider the Honda Accord for your next new car purchase? It is important that you consider all of the options that are available to you before you sign or make any agreements. The price of owning a car is forever increasing, so it is always best for you to try and get a good deal on your car in the first instance. Choosing a reputable manufacturer, such as Honda, is also a good idea.

It may be worth considering part-exchange in order to fun your new vehicle as many people do not have the necessary funds to afford the purchase of a new vehicle. However, it is worth noting that in many cases car dealers will offer you a lot less money for your car than you could potentially get for it elsewhere. Try selling your car via others means first, carrying out a used car evaluation through a reputable website is a good idea. If you do not think that your car is worth selling then you could always consider the scrapping scheme, which will provide you with a few extra pennies that can be put towards funding your new car.

People often say that the best way to pay for your new car is with cash. In this way, you avoid getting yourself into debt because you are paying with money that you actually have, and not something like an overdraft. If you do need to use motor credit then think about it very carefully before you do so. There are many different ways that you can obtain car credit. You can obtain it from the car dealer quite easily. You can also obtain it from a bank or building society. Don't be tricked into going for the car credit option which is offered by the dealership. This may be the easiest and quickest way to get car credit, but it may also end up costing you the most overall.

There are three main ways that you can pay for a car through a dealership: personal contract purchase, hire purchase or loan purchase.

Personal contract purchase involves you paying for some of the cost of the car over a certain period of time. After this period has ended, you are then usually given the choice of buying the vehicle outright.

A loan purchase is essentially a loan that is offered by the car dealership as opposed to a bank. These loan purchases often have high interests rates attached to them so it is probably best to compare them with other deals that are available.

Hire purchase involves putting down a deposit and then paying for half the price of the car and then paying fixed installments until half the price of the car is paid for. At this point in time, the installment payments are then reviewed. You are then given a choice to proceed with the payment plan or you can just simply return the vehicle.