The right way to buy a car

Written by Jason Hulott

Continued from page 1

Hire Purchase (HP) HP is where a deposit is followed by regular monthly repayment. However,repparttar car is owned byrepparttar 102791 finance company untilrepparttar 102792 loan is repaid. So, if you fail to maintainrepparttar 102793 finance payments you could loserepparttar 102794 vehicle.

Hire Purchase is fairly easy to obtain and widely available, and with it you also get additional protection underrepparttar 102795 Consumer Credit Act

Personal Loan (as opposed to Manufacturer’s finance) A personal loan is probablyrepparttar 102796 cheapest way to buy a new or used car as personal loan providers tend to offer lower interest rates than traditional other car financing methods. Also, as you are classed as a ‘cash purchaser’ (because you already haverepparttar 102797 finance in place) you are in a strong position to negotiate a good deal.

Asrepparttar 102798 loan will not be secured onrepparttar 102799 vehicle,repparttar 102800 car is owned outright by you.

Manufacturers schemes These are offered by manufacturers, dealers, finance companies and some banks forrepparttar 102801 purchase of new or nearly new cars. More often than not, you will be paying interest at a higher interest rate than that offered on a personal loan. With manufacturers schemes, you can part exchange your own vehicle and may also need to make a deposit. You will then have a finance agreement forrepparttar 102802 remainder ofrepparttar 102803 cost ofrepparttar 102804 vehicle. As with HP, if you do fail to keep uprepparttar 102805 repayments onrepparttar 102806 vehicle, it may be repossessed.

Personal Contract Purchase (PCP) PCP schemes available from car dealers as well as banks. You pay a small deposit and a set amount of monthly payments. Whenrepparttar 102807 contract ends, you have three options:

• you can handrepparttar 102808 car back and owe nothing, • you can payrepparttar 102809 balance (which, in any contract you sign, will be stated asrepparttar 102810 Minimum Guaranteed Future Value) and keeprepparttar 102811 car, • you can trade it in for another, and begin a new PCP.

PCPs are best for people who like a new car every two or three years. If you are looking to keep a car long term, then personal or hire-purchase loans will be cheaper.

By now you should have a good idea of where to buy your car from and how to finance your purchase. Here are…

Ten top tips on what to do when buying …

…. from a car dealer or broker

• Do your research first – get a good idea of what car you want and how much you are prepared for pay for it and stick torepparttar 102812 price • Whenrepparttar 102813 salesman asks you what your budget is, always come in at least £500 under what you are really prepared to pay. Salesmen will always add £500 on top of your budget because byrepparttar 102814 time you are sitting down and talking about figures with him or her, it is obvious you really wantrepparttar 102815 car and will find a way to financerepparttar 102816 ‘extra’ £500 • If you are part exchanging your vehicle, check out it’s value somewhere like Parkers Price guide. While you will never get 100% market value on your p/x from a dealer, at least you have a rough figure as to what it should be. • Always be confident, polite, but firm. You are likely to get a better deal if you come across as someone who won’t be messed about with! • Consider buying an ex-demo. These are normally no older than three months’ old, but you can expect to get up to 15% offrepparttar 102817 new price!

….. privately • Always take someone with you to give a second opinion – two pairs of eyes are better than one and go during broad daylight so that any scrapes or dents will show up • Always meetrepparttar 102818 seller at their house so you can check they are genuine and that all documentation tallies up • Test driverepparttar 102819 car and listen out for any noises, as well to check that there are no ‘blind spots’ and thatrepparttar 102820 car feels comfortable • If you feelrepparttar 102821 car is right for you, arrange to have an independent survey carried out by one ofrepparttar 102822 motoring organisations. This will highlight any flaws or potential problems. • Always be confident, polite, but firm. You are likely to get a better deal if you come across as someone who won’t be messed about with!

Motor Car Loans an automotive resource guide for those looking to buy, insure , sell or in fact do all most anything with a car. Sign up to our free car insurance course, send an email to

What is Road Hazard Warranty? Do You Really Need It?

Written by Gene Grant

Continued from page 1

Here is an example. Let's say your tire is 1/2 way worn atrepparttar time ofrepparttar 102790 flat. With tires averaging $100 each, your replacement cost would only be $50.00. Much better than full price, yes? Definitely - great value.

Typically, Road Hazard warranties will cover things like nails, glass, metal, stones etc. and almost anything else that could puncture or damage a tire. Some Road Hazrd packages provide a nationwide coverage, which are great for people who are traveling, or vacationing, because you now have peace of mind knowing that you are protected while away from your local area.

In addition, many Road Hazard warranties offer other benefits like free rotations and free balancing (check where you purchase your tires for allrepparttar 102791 details). Regular maintenance isrepparttar 102792 best way to extendrepparttar 102793 life of your tire and get as many miles as possible for your investment.

Next time you are ready to purchase tires, ask your tire dealer forrepparttar 102794 road hazard warranty. You'll be glad you did.


Gene Grant is retired fromrepparttar 102795 automotive industry after 25 years and has createdrepparttar 102796 resource


Gene Grant is retired from the automotive industry after 25 years and has created the resource

    <Back to Page 1 © 2005
Terms of Use