Purchasing a new car is one of life’s big choices. A car is a valuable thing and you will probably not get a lot of chances to buy new ones. Next to possibly your mortgage, the monthly payments to finance the vehicle will be your largest outgoing cost.

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It’s very important to get the right finance package to meet your needs, but most importantly your budget. The golden rule is the budget for what you can afford not for what you dream about and consider what length of time you will need the finance. Tesco Personal Loans are currently offering some of the best rates available.

Visit the repayments calculator at http://www.tescofinance.com/personal/finance/finance/loans/repay_calc.jsp, check the repayments on your loan requirement and apply online.

If you are checking out finance deals, you should know that if buying a car, sometimes it might be smarter to get those deals from somewhere else, not from the place where you are getting the car. This gives you better bargaining power at the dealer since you are essentially a cash buyer. Also, 0% finance may look attractive. But are you paying more for the vehicle initially than you should be?

Working with loans

Decide how long you wish to take the loan out for. The payments will be lower if a longer period is decided upon. But, for example, if you choose 60 months ie 5 years, think about how you will feel in 2 years time. ‘Still paying the loan off on a car that is 2 years older, worth less, and there’s still 3 years to pay’. Ask what the APR of the finance is, you can use this to compare finance packages from banks and building societies or loan houses. The lower APR the less you pay.

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You need to be mindfull when taking out a loan. Never put a place where you live in as collateral for a car loan. If it all goes pear shape you still need a roof over your head and you don’t need a car! If the lender has the facility for insuring the loan against losing your job etc. look into it.

All of these things should be taken into consideration. Remember, it may sound like the deal of the century, but take a step back and think about it. The deal will, after all, still be there tomorrow.

Business finance and leasing

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