When it comes to buying a new or used car, the biggest factor that can affect your purchase is cost. It is not uncommon for people to opt for a financing option when it comes to buying a new car, be that through the car dealers themselves or with their bank, but which way is best?
The two main ways to spread the cost of a car is to either take out a loan from the bank, pay for the car in full, then pay the bank back in manageable monthly instalments. Alternatively, many car dealers now offer customers the option to buy a car on finance, where the customer pays the dealer back in set monthly instalments.
There is no right or wrong answer as it depends on the interest rates and the extra costs involved with each plan. That is why it is so important to read through the contracts for the car dealer and bank before you sign any deal, this way you can make sure you are getting the best payment plan possible.