If paying cash to buy a new car just isn’t in your realm of possibility, you’re either going to be leasing the car, or buying the car by financing it.
If you’re buying, then you’re probably financing it through the vehicle finance company or dealership, a bank, an online financial institute, or maybe even a family member.
Dealership:
When buying a car though a dealership all financing is arranged by the dealer. Be prepared for a big sales push on add-ons. The arranged finance is often front-loaded meaning the payments are made up of more interest in the beginning of the loan than toward the end. If you are planning on paying off the car loan early you may want to consider another option.
Bank:
When you ask your banker for finance you may get more competitive rates and no add-ons and the loans are usually simple interest loans (interest spread evenly throughout the term of the loan)
Online financial institution:
Applying online for bad credit car finance is simple and easy with competitive rates. Your online Vehicle Finance Broker often works together with more than one financial institution and will assist you in arranging the best deal for you. Be advised to never pay cash or upfront fees to any online broker, these broker normally gets a commission from the financial institution.
Home equity loan:
You car use the equity in your home loan to buy a car. Remember that the loan amount is now stretched out over a longer term period.
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