What Is The Best Way To Pay For That Dream Car You’ve Always Wanted?

Many people will have a car in mind that they’ve always wanted to buy. Such cars are anything from small hatchbacks to exotic Italian super cars. Regardless of the make and model, I bet you’ve thought a lot about “the” car you’ve always wanted!

Trouble is, how do you pay for it? There aren’t many people in this world that will give you a vehicle for free. It would be great if we didn’t have to pay for our cars, but sadly we do! For those of us unlucky enough to have to work for a living, we need to come up with the cash somehow.

The good news is that there is a variety of ways you can raise the funds you need to buy your next dream car. And they don’t involve doing anything illegal or dodgy in any way, shape or form! Check out these common examples below:

Savings

When people spend money on their dream car, some of them prefer to buy their vehicles outright. To do this, they need to have available funds that they can transfer to the seller. The majority of cash buyers pay for their cars using money they have saved up over a period.



Some folks are lucky enough to have a lot of money left over each month after they have paid their bills. It makes sense for them to put the money aside in an interest-bearing savings account. And then withdraw the cash as a lump sum to pay for their dream cars.

Depending on how much your new pride and joy will cost, you might need to save up money for a few years before having the funds available. Only then can you head down to Motorline Direct or wherever you’ve spotted that dream car for sale!

Credit card

Buying stuff on a credit card can often be a dangerous move. Why? Because you get charged lots of interest! Still, some savvy shoppers have found a way around this problem by getting their cars on 0% interest credit cards!

When that interest-free period expires, they just transfer the balance to another card. Pretty smooth move, don’t you think?

Loan

If you don’t trust yourself with a credit card, your next option is to take out a personal loan with your bank. Or, indeed, another establishment like a peer-to-peer lender. Unlike credit cards, you don’t pay compounded interest.

You just pay a set amount of installments each month. And when that balance reaches zero, you have nothing more to pay!

Finance

One of the easiest ways to borrow money for a car purchase is to take out finance. It’s easy because the “loan” gets secured against the car. That means if you don’t pay your installments on time, the finance company can repossess your pride and joy.

There are two ways you can finance your next dream car. The first is to lease it, and the second is to take out hire-purchase finance. With the first option, you pay a deposit and set number of monthly installments. At the end of the term, you can either pay the car off or hand it back to the dealer, with nothing more to pay.

The HP option is similar, but you own the car at the end of the term.