Finance

Vehicle finance can be obtained through car dealerships, via your bank or in some instances perhaps via a family member or a good friend. In this article we will talk about the different options you can choose from when buying a car.

Different financing options

There are pros and cons when it comes to every type of vehicle finance.

  • Bank finance

What’s good:

Getting vehicle finance through your bank often means that you get personal service. You won’t be dealing with sales people putting pressure on you. Your bank will give you impartial advice and competitive rates. With bank loans the interest is usually spread out evenly over the duration of the loan.

What’s not so good:

Bank finance may not be as convenient as financing your vehicle through the dealership. The main reason for this is that financing through a bank can’t be set up during weekends and usually takes a bit longer in general.

• Dealership finance

What’s good:

Vehicle finance through a dealer can be convenient, fast and sometimes competitive in terms of interest rates.

What’s not so good:

There is a certain amount of pressure when financing your car through a dealer. You will need to be prepared to deal with a salesperson that is keen to get his hands on his commission, often pushing for add-on sales as well.

• Finance through family or friends

What’s good:

Finance through friends or family is probably the easiest of options. It can be a very flexible arrangement, and the interest rates may be the most competitive out of all the options.

What’s not so good:

Borrowing money from friends can be very tricky and jeopardise relationships. If you go the friends or family finance route, make sure a legally binding agreement is drawn up and make your repayments through debit order if possible.