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A car is an essential part of life. Without it, it can be difficult to get to work, to appointments and to your child's games, unless you live in a large city with a good public transportation system. For this reason car finance is a great worry in many peoples' lives. It becomes even more so for people who have problems borrowing money and those who don't have the income to sustain a financing agreement.
Before you get financing, you need to decide what type of car to get. One of the most important aspects to look at is that of gas mileage. As the past has shown, prices can rise quickly and steeply at any time. For this reason, a hybrid vehicle may be more financially feasible in the long run. Although a fully gas powered car can be cheaper in the immediate future, it may harm you in the long run and you may find yourself trying to finance another car sooner than you expected.
There are many ways to finance a car:
1. Save up for the purchase. This will be an easier task of you have a large income or if you are purchasing a less expensive, used car.
2. Borrow from family. This is probably not a feasible option if you are buying a new hybid car, but may be an option if you are buying a less expensive, used car.
3. Borrow from a bank. This is a great option for those who plan to buy a new, expensive vehicle -- especially if it is a higher-end car or a hybrid, as these can be costly.
You may be limited on your financing options if you have a poor borrowing history. For those who do, you may be limited to option 1 or 2, which may also make it impossible for you to finance a new car, like a hybrid. If you have a good borrowing history, then option 3 will likely be a feasible option and the best one for you. Options 1 and 2 are also best for those who have a limited income, while option 3 is best for those who have an income that can support a montly financing agreement for multiple years.
Financing a new or used car can be difficult, but your time and effort will pay off in the end. If you become discouraged, remember how much easier your life will be once you have a reliable form of transportation.