The Cheap Alternatives To Traditional Car Financing

By Author: Belinda Darling
Total Articles: 152
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We all know that car financing takes a big chunk out of pay checks and business bank balances. It's a necessary 'evil' in most situations, and to some extent that expense is unavoidable - simply because cars are expensive items! However, if you don't explore your options you are unlikely to make any savings, so today we start looking for the cheap alternatives to traditional car financing.

Car Financing Without a Loan!
This is the cheapest way to purchase your car - simply pay for it outright. It is true that there are some tax benefits in car leasing, but they are never high enough to negate the cost of interest on your Melbourne car loan. If you're able to pay for your car purchase outright, consider the ups and downs of payment methods like:
• Paying on your credit card to enjoy the benefit of rewards points, then paying off your balance within the interest free period
• Paying in cash to avoid bank fees

Don't forget that outright payment should carry some weight when you're bargaining for the final price of your car purchase. Use what you've got - don't be afraid to walk away and take ...
... your immediate cash sale elsewhere if you don't get the price tag you need!

Asset Sales to Fund Car Financing
Depending on what assets you have available, it may be cheaper to liquidate some assets and use the proceeds to finance your car purchase. For example, do you have:
• An older car which you could sell off to partially pay for your new car financing?
• Unused machinery or equipment?
• Any old goods which could be sold on eBay or at a garage sale?

If you take this option for Melbourne car financing, you should only sell items which won't need to be replaced. The cost of replacing items will be higher than the benefit gained from cutting down your Melbourne car loan.

Utilising Home Equity for Car Financing
The stability and long term profitability of housing makes loans secured against a home cheaper than those secured against a car. So, if you are don't have the ready cash available to purchase your car outright, the best option is to use any equity available in your home loan as your car financing method. If you are taking out the car financing for business purpose and would like to keep your personal finances separate from the business, use any equity available in building loans under the business name - though the interest for these may be slightly higher.

Your interest rate will match whatever the current lender mortgage rate is - usually several percentage points lower than standard car financing.

Secured Personal Loan
These are the most well-known methods of car financing, and usually have the lowest interest attached. They are suitable for people in basic, uncomplicated financial situations. For those who do anything complex with their finances to manage or minimise tax obligations, different types of Melbourne car loans such as novated leases or standard leases may be more suitable.

There are plenty of ways to purchase your car that are cheaper than a highly featured but also high interest car financing arrangements. Additionally, these arrangements don't have to include financial gymnastics! Your car financing broker may also be able to help you through your options for cheap Melbourne car loans.

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