Which is best? Loan, credit card or garages own hire to buy option

wannaberich41

Hi,
My daughter really wants buy a new car but want to know which would be the best option for her financially. I know it's not best to get any loan at all but she does need a new car.
Bank loan
The garages loan (think normally a higher rate)
Credit card
Hire to buy option(not sure about this)
She has looked into loans but I don't think she can over pay on these can she?
She has looked at hitachi as that's the lowest rate I think at the moment?
When you get a loan is the money instantly in your bank?
Are there any loans companies to avoid?

Many thanks

Nebulous2

It's difficult to tell, depending very much on her circumstances, credit history etc.

First of all - no-one needs a new car if you mean a first-owner car. That is always a luxury, indulgence purchase. We've all been there though. New shiny things are very seductive and attractive.

She needs to read up on the options, do her homework and be prepared to haggle.

Often for a new car the garage finance is best, even if you have the cash available. That is because they will offer a sweetener to take it. You might get a dealer contribution (effectively an additional discount) of 1000s of pounds on an expensive car and other goodies such as an extended warranty. The trick is to take it, get the discounts and then pay it off quite quickly. That may mean another loan, at a low rate of interest, which could be a problem if your daughter cannot get another one at a good rate.

All consumer finance I am aware of will let you make additional payments to pay it off more quickly and save interest.

A loan with some banks could be in your account quickly, same day in some cases, but some of them could take 2 weeks or even more to process. Often the very low interest, heavily promoted loans, are swamped with applications and take longer.