Recent warnings that the government-allotted funds set aside for the car scrappage scheme would shortly run out left many consumers thinking they would not be able to participate. However, news that additional funds have been set aside to help with the purchase of 100,000 new vehicles by consumers means you still have a chance to turn in your old car and buy a new one.
While the car scrappage incentive will certainly help, there is still a good chance you will need to arrange a car loan to pay the balance due. The good news is that you may find it easier to obtain a loan these days, as banks step up their competition for new business.
As with any financial transaction, you have options when it comes to the loan. You can choose to go with financing arranged by the car dealer, or you can step out on your own and investigate loan possibilities with different banks. Depending on your credit score and the general stability of your financial situation, you may find it wise to look closely at loans offered by different banks rather than going with dealer financing.
Take the time to find out what terms and conditions, including interest rates, that you can reasonably expect to get from lenders like Welcome Car Finance as well as banks like HSBC. Comparing terms and rates may yield some pleasant surprises in the financing, allowing you to pay off the loan in less time than you think. You may also find yourself with a lower monthly payment if you do some shopping around before making a commitment to any one lender.
Tags: car loan, HSBC, Welcome Car Finance
