No matter what type of vehicle you’re looking to buy, there are a large number of finance options available, whether you’re after car finance or jet ski finance. In this article, we’re going to look at five of the most popular ways to fund your next purchase.

Cash

This is the most straightforward, and long-term cheapest, option, as you won’t need to pay any interest or lender fees. Be warned, this method of purchase is typically limited to those with large savings accounts. Cash purchases are the only way to guarantee you’re getting the best out of any deal as there can be no changes made after signing on the dotted line.

However, paying cash is not an option for all drivers, as it requires you to have a large amount of cash on hand to buy the vehicle outright. Luckily, there are a range of other finance options available.

Secured loan

A secured loan is where your lender will hold something of yours as security against the amount you owe. This could be in the form of a car, van or boat which is held for sale until the loan has been paid off in full. Secured loans are typically accompanied by lower interest rates, because you’re giving your lender a larger amount of security by providing your car (or other asset) as collateral on the loan.

This is one of the most popular types of loans because they’re a quick and easy way to finance a car.

Unsecured loan

Unlike a secured loan, an unsecured loan gives you access to more cash with less security. Instead of holding something of yours as collateral for your debt, they will instead ask for regular payments directly from your bank account until the debt is paid off.

They will normally have higher interest rates, because lenders will view you as a higher risk customer.

Dealer finance

Another finance option is to get a loan directly through the dealership you are purchasing your new vehicle from. Dealer finance can often be the quickest and simplest way to get the wheels turning, as they will usually offer guaranteed approval. However, it’s important to be wary of ultra low interest rates, as this may mean that you’re paying a higher price for the car itself.

Credit card

Finally, you can also use your credit card to purchase a new vehicle. While this more of an instant cash-type solution, you’ll need to check your credit card company’s terms and conditions as they may charge interest up front or on ongoing payments. It’s worth noting that not all cards will allow you to buy a new vehicle, so it’s important to check before committing to any one choice of finance provider.

So there you have it, five of the best ways to finance your new vehicle (whatever it may be!). Make sure you take the time to fully assess all of your options and weigh up the pros and cons of each option to find the best one for you.