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Will Using a Car loan make my Car Cheaper?

By admin

There are lots of ways that we can consider paying or a car and a car loan is just one of them. It is a popular method and there are advantages to paying this way as well as disadvantages. Some people feel that it is good because it will mean that their car will be cheaper as a result. But is this true?

How can a car loan make a car cheaper?

When you go to a dealer and look at cars, they will often offer you a discount if you take out car finance through them. This means that it will seem that you will save money on the car by doing this. However, this might not always be the case. You will need to do some calculations to find out. For example, you will need to find out how much the car loan will cost you and then compare that with the amount of money they have offered off the car. They might reduce the asking price by £500 and the loan might cost £300 and you will have saved £200. However, they might knock off £500 but the loan will cost you £700 and you will actually be paying out more, even though your car will still be cheaper. Therefore, it will be really important to get all of the figures together so that you can calculate it all. Sites such as Omacl.co.uk can help with this.

You also need to be careful because you may find that car will be cheaper form another dealer. Not that specific car, as only one dealer can sell that car, but a similar car might be cheaper elsewhere. It is good to look around at different dealers as you may find that some are just cheaper than others anyway. But if you do use their finance, then that might eb dearer. This means that you need to calculate the whole cost – that of the car and the finance added together so that you can calculate the true cost of the car.

You may even find that there are dealers that will offer interest free credit. This means that you will be able to borrow the money to pay for the car without paying any interest on the loan. This may not be as good as it looks though. Firstly, you may find that there are admin fees that you have to pay, perhaps to set up the loan. Then you may find that the cars are dearer because they have the finance fees incorporated into their prices. You may even find that it is the charges on the loans that are higher and that if you miss a repayment you will have a lot of extra money to pay. It is therefore wise to look into things really carefully.

Will it make my car cheaper?

Whether it will make your car purchase cheaper will depend on the dealer, the car and the loan. You might find that if you take a car loan from a different lender or use a personal loan instead it will be cheaper than accepting the lowered price form the dealer with their finance plan. It can all be rather complex, but it is well worth working it all out to make sure that you really are getting a good deal. The important thing to do is to find out exactly how much you will repay using the loan. If you do that for every deal you find then you will know which will be the most expensive.

Therefore, once you have chosen the car you want, look around to see if there are any other cars that are similar available and compare the prices. Then look at the finance deals offered by the dealers as well as other lenders and see whether these are good. Calculate how much you will pay in total for the various cars if you use the different finance deals and you will then be able to see which will be the cheapest. It is very wise to find out whether there are any additional charges on the finance deals and also what you will get charged if you miss repayments. This could be quite different between lenders and so it is really important to find this out.

It is likely that if you borrow money to buy a car it will be more expensive than if you buy that car outright with your own money. However, there may be a few exceptions to this and so it is well worth doing the calculations in order to find out. You do need to make sure that there are not comparable cars for sale elsewhere that might cheaper as well. Of course, with second hand cars it can be difficult to compare then exactly, but you should be able to make a fairly good comparison to make sure that you are not paying more than necessary.

Can I use a Personal Loan to pay for a Holiday?

By admin

Many of us really enjoy having a good holiday. Getting away form work and home can help us to really relax, whether that is with family, friends or on our own. It can really help us with managing our stress as well as giving us the chance to explore new places and do different things. However, holidays can be expensive and it can be the case that we cannot afford the holidays that we want. We may consider borrowing the money to pay for it and perhaps wonder whether a personal loan will be the answer.

Can a personal loan be used?

There are some loans which give restrictions on what they can be used for. This means that we can only use them to buy certain things. With a personal loan there is not a restriction. The lender will not be concerned with what you are spending the money on. This means that you can use it to pay for a holiday if you want to. Of course, the lender may want to do checks though. They will certainly do a credit check, for example and if they feel that your credit record is not good enough they will not lend you the money. This means that the loan is not guaranteed.

Is it wise to use one?

Choosing a personal loan has advantages and disadvantages. Often you will borrow fairly big sums of money with a personal loan. If you are going on a world tour then you may need a substantial sum of money but if you are camping for a weekend in Wales, then you may find the loan is too much. You may feel that there is nothing wrong with borrowing too much money and that you will actually be at an advantage as you will be able to use the extra money for other things or go on a more expensive holiday than you planned. Although this might seem great, you need to think about the fact that that loans costs money and you will need to repay the loan.

A loan might be the only way that you can afford a holiday. If you have not had time to save up or you are just not good at saving then it could be the only option for you. For some people a holiday can have a huge impact on their mental health and will therefore be well worth it. It is good to decide whether this is the case for you though as the loan will not be cheap.

The more money you borrow and the longer you borrow it for, the more expensive the loan will be. It is a good idea to find out exactly how much the loan will cost you and that will enable you to be able to decide whether you think that it will be worth it. It is also a good idea to find out how much you will be expected to repay and how often. It is really important that you keep up with these repayments or else you could end up being charged extra or even going to court. Therefore, it is so important to never borrow more money than you can afford.

What are the alternatives?

If you are concerned about using a personal loan to pay for a holiday, then it can be worth looking at the alternatives. You will be best to start by comparing lenders. You may find that the one personal loan you were looking at was particularly expensive, for example and that there are others available that suit you better. Or, you may find that there are different loans types that would be better for you to use. You could find that you might find one where you can borrow less money or that has repayments that are smaller and therefore easier for you to manage, for example.

It is also worth thinking about the alternatives to borrowing. It might be that you have some savings that you could use or that you could save up for a while to pay for it. You may have some items that you can sell in order to make some money. You might be able to make some extra money in some way perhaps. It will depend on how much money you need as to whether an alternative solution might work. It is worth considering them though as even if they just make a small contribution it could mean that you will be able to borrow less or that you can use the extra money as spending money or to buy meals out or other treats while you are on holiday. It is worth some thought as you do not want to be worrying about repaying your loan while you are on holiday. If you do lots of research and make sure that you are confident in the way that you finance it, then you can truly relax.