PERSONAL LOAN OR HIRE PURCHASE? www.glensidefinance.co.uk CAR FINANCE:
Aug 06, 2015
Which is the best type of car finance for you?
Perhaps you need transport to get to work; perhaps the local takeout is infuriatingly far away if you have to
get there on foot.
Either way, you’ve decided it’s time to buy a car. There’s just one problem: you’re not sure whether you should finance the purchase with a personal
loan or with Hire Purchase.
These are two of the most widely-used forms of car finance, and choosing between them can be
intimidating. But never fear, we’re here to help you compare the two and reach a decision!
Personal LoanA personal loan is the first option. Available from loan
companies and banks alike, this option simply lets you borrow the money to purchase the car
outright. You’ll still have to pay back the debt, of course, but the
car becomes yours immediately; you can hang your fluffy dice in the windshield secure in the
knowledge that if you happen to miss a payment, there’s no danger of them (or the car) being taken
away. This may be the option for you if you’re confident
in your ability to handle debt and have a good credit rating.
Hire PurchaseHire Purchase is another option. You agree on a deposit to be laid down with the dealer, then pay
off the remainder in regular monthly instalments.
You don’t own the car until the final payment has gone through (so, sadly, you have to hold off on any
neon-hued custom paint-jobs you might be contemplating).
You still have the use of the vehicle before that time.This may be the better option if you’re confident you
can keep up the repayments on the car and would prefer to avoid a personal loan or have been
declined for a personal loan due to a poor credit history.
Whichever option you choose, remember to obtain your car
finance from a source you feel sure you can trust.
Bear that in mind and, before long, you’ll have a car to call your
own… including the fluffy dice and questionable paintwork.