The best way to finance a car

It is important to recognise that many vehicle retailers have access to a very limited number of financial products.

This means that you may just be presented with the options they have available, which may or may not include the one that’s right for you.

My first recommendation is to talk to a vehicle finance specialist who is genuinely independent from any manufacturer, bank or financial institution.

If you follow this first piece of advice, you should find that they ask you a series of fact finding questions that will help them to suggest a finance package that’s right for your needs.

Invariably, you will be asked questions such as:
1. Is the vehicle for personal or business use?
2. Are you a sole trader or a limited company?
3. Are you VAT registered?
4. Do you want to own the vehicle now, later or not at all?
5. What budget do you have in mind?

The final point, when combined with the other questions, it will guide you towards selecting a finance method that suits your immediate and longer term goals.

For example, you may want to own the vehicle from the start and pay the entire cost over an agreed time frame.

On the other hand, you may be happy to agree to an annual mileage, meaning the finance company can estimate the future value of the vehicle and make this an optional end of contract cost if you decide to keep it.

In summary, my advice would be to decide what is most important to you, such as low monthly payment, the option to include fixed maintenance costs or the ability to defer the decision on ownership to a later stage and then make sure you consider all of the available options before making a final decision.

Tony Cameron
Cameron Clarke Leasing