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Thu 7th Jun, 2007
Posted in Borrowing, Car finance, Car loans, Car ownership, Consumer Credit, Missed payments, Personal loans, Secured loans, Spending, UK Finance, interest rates at 12:14 pm by Steve Smith
Since the beginning of this year thousands of Britons have purchased new cars and it is predicted that about 400,000 more will buy a car this year, with many of them ending up paying too much by using an expensive car loan.
When it comes to purchasing a car, there are many financing options that are available to a consumer. One of the most popular types of finance is the hire purchase, which is a loan that is secured against the car that is being purchased. Often this type of financing is offered by the car dealership, however consumers need to realise that they do not own the car until the total amount of the loan has been paid off; until then the car is owned by the car dealership and can be repossessed should you miss payments and default on the loan. The other downfall to a hire purchase is the fact that it is expensive. Many car dealerships offer 0% interest on a hire purchase, however these deals often require a deposit of as much as 40 percent of the asking price. The average interest rates on a hire purchase schemes are typically in the double digits, whereas a personal loan can be obtained for less than six percent.
Buyers can take out a personal loan to fund the purchase of a new car from another institute, such as their bank or a lender other than the car dealership. With a lower interest rate buyers can save a significant amount of money in terms of how much interest is paid out. Another benefit of applying for a personal loan when purchasing a new car is the fact that you will have the money in place beforehand, giving you the advantage of being able to bargain with the dealer. There are many other forms of financing; it’s just a matter of finding what is right for you.
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Tue 6th Mar, 2007
Posted in Borrowing, Car finance, Car loans, Car ownership, Consumer Credit, Financial products, Personal loans, Secured loans, Spending, UK Finance, Unsecured loans, interest rates at 10:26 am by Steve Smith
A new car can become an expensive purchase if you choose the wrong car loan. Often many people end up choosing finance plans that are offered by car dealerships because they are not aware that they can obtain a loan elsewhere. Financing through a car dealership is not the best choice as they often charge high rates of interest and really only bear in mind the commission that they will be making off of you. Don’t be fooled into believing that a loan through a car dealer is your only option. Look into financing through an independent car loan specialist, as you are more likely to be offered a low interest rate and a repayment plan spread over a period of time that you choose. It is worth searching around for the best loan on the market.
With car loans, there are two types; a specialist car loan and a regular personal loan. A specialist car loan is where the amount of the loan is secured against the car instead of your house. Where as a regular personal loan is unsecured and requires security against the amount borrowed. Typically a specialist car loan offers borrowers a lower interest rate, because the lenders have security for their investment, whereas they have none on an unsecured personal loan.
The repayments on a car loan really depend on the repayment plan that you and the lender decide upon, the length of time you wish to pay back the loan, and also the interest rate on the loan. When you are shopping around for a car loan, ask lenders what type of loan you can qualify for and what loan would be best for you. You want to compare the interest rate, and the benefits that the lenders offer you. By shopping around and comparing various types of car loans, you will be able to find a loan that is right for you and your personal circumstances. By searching for financing through various companies, either online or with a bank, you won’t end up being suckered into financing through a car dealership. Comparing and finding other financing routes will pay off.
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Wed 21st Feb, 2007
Posted in Borrowing, Car finance, Car ownership, Consumer Credit, Financial news, Homeowners, Personal debt, Property, Savings, Spending, Student debt, UK Finance, interest rates at 1:27 pm by Steve Smith
The basic cost of living expands far beyond interest rates, council taxes, and increasing utility bills. The cost of living is impacted by life choices and decisions consumers make.
One group of consumers who are hit hardest is divorced and single parents. This consumer group needs to survive without a dual income, but they also need to absorb the cost of the divorce. Norwich Union’s “Cost of Divorce” survey reveals that couples spend £28,000 to divorce, twice that of 2003.
Another cost that has increased dramatically is the cost of driving. The average car now costs £5,539 a year to run, equivalent to £15 a day. This is spurred by an increase in fuel costs. However, it is also increased by consumer’s desire for better automobiles.
Several reports published last year stated that new graduates are discouraged at the cost of living. Many claim that they will not be able to afford to buy a home, or start a family, for at least a decade because of their student loans.
The cost of raising a child from birth to 21 years old is £180,137, or £23.50 per day. The cost of raising a child rose 9 per cent last year alone, according to research from Liverpool Victoria.
Not all increases in the cost of living are necessity based. Britons are now spending more on eating in restaurants, pubs and on takeaway meals than on buying fresh and processed food and drink products to have at home. This has increased their food bills substantially.
The average wedding will now cost £19,595.This is a major blow for the 45 per cent of couples, approximately 117,000, who claim they have no financial planning to pay for their wedding, according to stockbrokers Brewin Dolphin Securities’ research.
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