Published on July 21st, 2021
Cars make life very convenient for their owners. Still, it’s no secret that they do not come cheap.
While car maintenance fees are spread out and therefore more affordable, you need to come up with the initial costs of owning a car.
This can be quite a challenge. So what do you do when you need a car, but your finances are wanting? Here are some solutions.
1. Apply For An Online Loan
First of all, you can get a no-credit-check loan online with instant approval. The funds you get from this can be used to put a down payment on your car of choice.
You, however, need to get a car you can afford. With the loan as a down payment in hand, find cars within that range and avoid getting too many add-ons.
These are always sold to you by salesmen as discounted features, but you might, later on, realize they are not.
Their downside is that they make the car more expensive, which is the last thing you need when financially unstable.
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2. Look At Asset Financing Options
Asset finance is an arrangement where a lender purchases an asset on your behalf and uses the asset as collateral.
This means that the lender owns the asset until you make your last payment. What you pay in such a case will be the cost of the car, plus the lender’s interest and associated lending fees.
Again, evaluate this option carefully to ensure you can afford to make the payments in a timely manner. Failure to do so and you risk losing the care and denting your credit score.
3. Sell Something
If you have other assets or investments, you can consider liquidating them to purchase a car. Think stocks, bonds, collector’s items, and even household items you don’t need as much as you need the car.
Depending on what you sell, you might not have enough to cover the entire cost of a new car. However, you can use what you have as a down payment.
4. Hire Purchase
This entails finding a motor dealer that sells cars on hire purchase. This means that you pay a deposit, and the car is released to you for use. You can then pay the outstanding balance in installments as you use the car.
Again, the seller will likely charge HP facilitation fees and some interest. Just like asset financing, you will not fully own the car until you make the final payment on it.
It is indeed possible to get a new car when your finances are not at their best. Either way, exercise caution and be sure to review every agreement carefully before you make any commitments.