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Cash, credit card or finance: which payment option is right for you?

Cash, credit card or finance: which payment option is right for you?


Paying cash for a new car is definitely the most convenient option. You won’t be charged interest or any borrowing fees and you won’t have to apply for a loan. Although, paying for a car upfront means you’ll have to save up all the money you need before you get your car — and what if you need it now? If you can afford to pay now you’ll need to plan ahead and make sure that after you’ve purchased your new car that you will be financially sorted for a few months afterwards. Also make sure to set money aside for any unexpected expenses that could arise. 

Credit Card

If you don’t have the cash upfront then you’re left with a few more options: credit card or car finance. Using a credit card can be an easy route to go down  it’s fast and you don’t have to fill in an application. However, you need to do your homework first and compare the interest rate of you credit car versus car financing. Read the fine print to make sure there are no rules or surcharges for large purchases. Also be sure to factor in the surcharge that car dealers have to pay when their customers buy with a credit card  this is usually passed on to you. In most cases using a credit card isn’t advisable and we recommend car finance so you get a better deal. 

Car Finance

Finance is by far the most common way people purchase new cars. At the moment, interest rates are at a record low so it’s never been cheaper to buy a new vehicle on finance. City Motor Group is here to help you find a great price and offer competitive rates. We offer:
  • Low or no-deposit options
  • On-the-spot approval
  • Tailored business finance solutions
  • Lease options
  • Extremely competitive interest rates
You can choose to pay off your car in two ways: fixed term or balloon payments. With fixed term payments, you’ll get a fixed interest rate over a period of time that you choose. With this option, you know from the beginning how much your repayments will be and how often you need to pay them. A more affordable option is a balloon payment, where you repay the amount by which your vehicle depreciates during your loan term and at the end you pay a lump sum to cover the rest. With the balloon payment option, you can sell your car at the end of your loan term and use the money to pay the remaining balance of your balloon payment. This means you can update your car regularly and affordably!

This might seem a little confusing but our knowledgable staff are happy to help you work out the best deal for you. Click here to contact us or give us a call on 0800 333 803.