Car Finance

Unless you have the cash handy to purchase your new car you’ll need some kind of loan or lease arrangement, but which of the many car finance options is best for you?

There are several ways to get quick finance for your new ride such as bank loans, factory finance or car leasing.

Knowing which financing deals work best is as important as negotiating the final price of the car. It’s no use getting a good deal on a vehicle if your repayments end up costing hundreds more than they should.


This is where a bank or other financial institution gives you the money required to buy the car and you pay it back with interest over an agreed period, usually three to five years. The advantage of a car loan is you can get pre-approval so you’ll know how much you’ll have to bargain with.

You can learn more about the different types of car loans here.


These are car loans arranged by the car dealers that are underwritten by the car manufacturers or third party financial institution. Sometimes these will have very-low or even no interest; however this will often be tied to you having to pay more for the car meaning you don’t necessarily save in the long term.


Shopping around for the best loan is as important as shopping for the best car price. Most people look for the lowest interest rate, however it’s more important to focus on the full repayment figure, which influenced by other factors such as fees and repayment options – most car manufacturer and financial institution websites have loan calculators to help you compare.


Another way to get a new car without having the money up front is to lease it, which is essentially a long term rental. When you lease a car you make regular payments which include the running costs of the car including maintenance and at the end of the lease period the car goes back to the lender. You can buy the car at the end of the lease period but the final balance, combined with all the payments you made would eclipse the car’s actual value when new.

Learn more about different types of car leases in our guide to financing your car.