After identifying the perfect car, how do buyers get around to buying it? Car finance can be a confusing subject considering the various options available to consumers. Here buyers will find a detailed description of the main options available.
The first and at times simplest method to use when it comes to car finance is paying in cash. Car buyers can use their savings or proceeds from the sale of their previous car to fund the purchase of the new car. The main factors to consider here include the interest rates. If lending rates are higher than interest rates on savings, it makes more sense to buy the car using the savings. This is because they are earning less than they would pay as interest. It is recommended that car buyers use their credit card to make the purchase and pay the entire sum the following month. This will help them enjoy protection from credit card guarantees.
These are loans, which are offered by financial institutions to their creditworthy customers. These loans normally require the borrower i.e. car buyer to have a good credit rating. Although this car finance option can cover the entire purchase price of the car, it is important to note they tend to reduce the borrowers access to additional funds future until the outstanding amount is cleared.
Another car finance option available to buyers looking to fund the acquisition of their dream car is Hire Purchase. This method normally requires car buyers to put down a 10% discount and then cover the remaining amount over a period of 12 to 60 months. In most cases, the method is provided for by the dealer. It is important to note that car buyers who opt for this method do not own the car until they have made the last payment.
KS Motor Company is one of the premier car buyers and sellers in Perth. They offer a wide variety of cars for sale to make sure all buyers get exactly what they are in the market for without compromising on value or preference. They understand that car finance in Perth can be hard to get at an affordable rate and offer easy in house financing as well.