subject: Purchasing A Luxury Used Car [print this page] In these austere economic times getting the cash together to buy a luxury used car can be hard work. Meanwhile, acquiring finance to buy your ideal used car is getting more and more difficult. There are many avenues you can go down in order to pay for a luxury used car, they include:
Financing the car
* Hire Purchase (HP) - If you have a car to exchange or a deposit then HP is for you. A motor financing company will buy the car for you and you pay them back at agreed payment amounts in affordable monthly payments. However, you will not own the car until the final payment is complete (beware this could be higher than the monthly costs).
* Personal contract purchase (PCP) - Like HP, a financing company buys the car for you. However, during the repayment term you only pay the difference between the full loan and the deferred final payment, plus interest. At the end of the agreement you can buy the car, walk away or trade the car against a new model.
* Leasing - Again the car is bought on your behalf, but at the end of the monthly payments you have no option to buy the car
* Personal loan - This takes the finance out of the equation and makes you solely responsible for paying back the bank at your discretion
How to pay once you have secured the money
* Cash - Very popular with private sellers for obvious reasons. However, it is risky for bother seller and buyer. There is the potential for fake banknotes and the danger of carrying such large amounts of money to meet a stranger. Doing the hand over at a bank would be advisable
* Bank Transfer - The electronic transferring of funds from one bank account to another is very safe. It can take a little time though, so may cause complications with the handing over of the keys and documentation
* Credit card - Traditionally the best way to pay a deposit for a vehicle, but not a suitable way to pay a large total due to the high interest associated over a period of time
* Bankers Draft - Pay the bank the money and they will raise a cheque to the seller to save the handing over of cash
