We are considering changing our car as it is not really adequate for our needs now we are a family of 5. Now Mr Squishy (our youngest of the 3 children) is getting bigger changing our car is something we have been giving serious consideration to.
For me finding the right vehicle can be blooming difficult. Let’s face it, I can’t get anything smaller than a five seater unless I plan to have hubby sit on the roof when we go for family outings which I doubt he’d appreciate with the fabulously erratic British weather. Once the obstacle of choosing the car is out of the way then we have to think about how we will pay for the car.
We need to look into selling our car privately first as of course we will get more for our car selling it ourselves then part exchanging. Part exchanging is always a consideration though for those that have a car that is on its last legs or really can’t face selling it themselves.
How will we pay for the car?
There are various options available that will of course depend on individual circumstances.
1. Pay in cash. Not an option for all for obvious reasons but the cheapest option.
2. Pay by credit card. This can give you more protection but be aware that some companies charge a card handling fee and not all will accept credit card payments.
3. Take out a personal loan. This will spread the cost over a certain time period but repayments can sometimes be higher than for other options. A possible option for us but for those with a poor credit rating it can be very hard to impossible to do this.
4. Car leasing. This is similar to a long term rental where you would pay monthly for the use of the car. There are 2 main types of car leasing personal contract hire (PCH) and personal contract purchase (PCP). There is a millage restriction with each of these that can put people off even though the payments for this can be cheaper than other options. PCH isn’t really a great option as you will not own the car at the end but with PCP you are given the option of a balloon payment at the end of the contact to buy the car.
These options are not always feasible for those with a poor credit history, CCJ’s, IVA and it can make buying a car difficult. Not wanting to leave out people in this position I looked to see options for car finance if you have a poor credit history and want to borrow up to £25,000.
With any of the above options your main consideration should most importantly be can I afford this? There is no point paying for a car with a card, loan etc. unless you can afford the repayments.
I must admit now that I have considered my options I am looking forward to searching for the perfect car for my family, wish me luck!