Best way to finance car purchase

AdeM_2

I'm about to come out of a company car scheme and take an allowance of approx £300 net per month to finance the purchase of my own car,i've been looking at a nearly new Honda CRV for approx £18.5K , I would prefer to own the car outright and have been looking at financing it over a three year period but there seems to be alot of different ways of of purchasing.....my question is do any of you have any experiences of the various different options available ?

Rafter

AdeM,

It boils down to cost and risk.

A personal loan is often cheaper than motor finance. But with motor finance (hire purchase) you do have the ability to walk away half way through the deal and hand the keys back if your circumstances change.

However with a low depreciating car like a Honda you are probably better off with a loan as the car will be worth more than the loan outstanding.

If you have a good credit rating, I'd go for a best buy personal loan and see how you get on. To secure the best interest rate you may have to accept the rip off insurance initially then simply cancel it within the 14 day cooling off period. By law they cannot withdraw the loan offer or change the interest rate simply because you change your mind about the insurance.

R.