Dealer finance, charges you a high rate of interest in comparison to other competitive products from several financial institutions. It may even come with additional terms and conditions like a bulky fee for early payment of the loan.

If you are serious about repayments, you can easily make use of a credit card for buying a new car. Though when compared to usual loans, most credit cards have high interest rates and can add on a considerable amount to the total sum of money to be paid. Making use of equity in your home is the other possible option.

Whenever you are planning the estimate for a car loan, it is better to keep in mind the running costs of your car. You should be aware that certain financing options include safeguarding costs, but you must have the expense required for road tax, car insurance and fuel costs.