Ways to buy a brand new car!

If you’re looking to buy a brand new car you may be wondering what’s the smartest, cheapest way to get you behind the wheel of the car you’ve always dreamt of owning. Here we look at ways that you can realise your dreams and how it will affect your pocket.


If you’re lucky enough to have cash in the bank then this could be a good option for you. With savings interest rates so low you won’t be losing out on an awful lot of interest at the moment! If however this is your only savings fund it may leave you feeling vulnerable if you use the entire amount to buy a car. Shop around for the best interest rates or visit Money Savings Expert for further advice: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
Part cash part loan

This option could work for you if you do have savings but don’t want to use it all for buying a car. This way you get to keep some money in the bank for emergencies and you will also reduce the amount of interest you will pay as the amount you are borrowing is less. Make sure you look around for good interest rates on loans and make sure your monthly repayments are within your budget.

Personal loan

If you have a good credit rating you may be able to get a good interest rate on a personal loan. They are also fairly easy to arrange as you can normally apply online and have a decision quickly. Make sure you read the contract details in full for instance if you have a windfall and want to pay the loan off early will there be a redemption penalty and also check how long the fund will take to be transferred to your bank account. Check out the Money Supermarket website to compare rates: https://www.moneysupermarket.com/loans/

Personal Contract Hire – PCH

Personal Contract Hire or personal lease is a great way to get a brand new car with low monthly payments. You basically lease a car for the period of your contract which is normally between 2 and 4 years. The amount you pay each month is based on the depreciation of the value of the car from brand new to the end of your contract hence why the monthly payments can be significantly cheaper. You can also opt to have maintenance included within your repayments taking all of the worry of maintaining the car away from you. The only thing you need to be very aware of is your mileage. If you have exceeded your mileage at the end of your contract then you will need to pay a penalty. If you’d like to find out more about PCH options visit ZenAuto.

Credit card
Buying a car either fully or in part will give you extra protection as long as you pay over £100 if you use a credit card. However the monthly minimum repayments can be quite substantial and you also need to check your interest rate as they can be quite high. Some car dealers do not accept credit card payments as they are no longer allowed to pass any handling fee onto their customers.