For some people, a car is an absolute must-have, and this is understandable. From getting to and from work to running errands or ferrying a couple of kids, having a car is rather convenient. Unfortunately, a car is considered a large ticket item. For this reason, financing one requires some thought and planning.
If you are looking to buy a new car, here are four useful options to keep in mind.
Payday Loans
Quick payday loans are often the go-to for many individuals because of their short application and funds disbursement process. Payday loans are credit options you can take to sort out unexpected expenses and repay once your salary (payday) kicks in.
Nothing is easier than applying for quick payday loans, and you can make your application and submit the required documents online. Most payday loan lenders will disburse the cash within 24 hours as long as the applicant meets the stipulations. Depending on the amount you qualify for, you can pay for the car in full, or make a deposit on it.
Savings
When it comes to making any purchases, your savings are the best and often the cheapest way to fund it. This is because your savings are yours, and there will not be any chargeable interest. This aside, you need not make any applications for funds. All that is required is to make a withdrawal or a cash transfer to the car seller.
Hire Purchase
Hire-purchase on a car is like a home mortgage, only on a car. First, you identify the car you want, then put down a deposit. This can be done using funds from your savings or a payday loan.
Different sellers will have set deposit amounts requirements that you will need to meet. Once this is done, you sign a repayment agreement that stipulates how many installments of which amounts you will be required to make monthly. These payments continue until you clear the outstanding amount. Keep in mind that the amount you will pay will include interest.
You can then drive off in your new car, though you won’t own it fully until the final payment is done. Before signing your contract, review the amounts and ensure the payments are manageable on your income. If they are too high, you risk missing payments, which will affect your credit score. Defaulting can also cause you to lose the car.
Take a Loan
If you have a good credit score and some collateral, you can approach a bank for a loan. You can also apply for a car loan and have the car you intend to purchase as collateral. Again, ensure the payments are within your means.
As you can see, you have several options to explore. The main thing is to identify an option easily available to you and that you can afford comfortably.
