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Purchasing a car requires a lot of prior planning. If as the consumer, you are aware of your budget constraints, and all goes well and you find your dream car in the desired budget, there is no better feeling. But one does not have to give up on your car because of limited financial options. There are many options to explore. Here are just a few of them.

• A personal loan: A personal loan is the cheapest way to buy a car. However, this means having good credit score. If this need is met, then any bank or finance lender will be able to give a loan. Make sure that valuable assets are not secured against this loan. This is an unnecessary risk.

• Cash purchase: Cash purchase is just like it sounds. This is where you pay cash for the purchase. This could be sourced from a personal savings or checking account. This could also be as a result of money received through a settlement or even a retirement account. The advantage here, of course I there would be no debt or accrued interest. A cash purchase is generally the least expensive way to go.

• Personal contract purchase: In this agreement the buyer makes lower monthly payments. However the total cost paid back at the end of the period will be higher than the original cost. Here, as opposed to getting a loan on the entire value of the car, a loan can be borrowed for the face value of the car at the time of purchase Vs face value at the end of period.

• Credit card purchase: Credit card purchase is the safest way to purchase a car. This is because it comes with more security. As long as the payments are met, there will be no issues here.

• Leasing: The last option is to lease the car. The manufacturer is paid a monthly cost for the car inclusive of maintenance costs. A ceiling of mileage usage is decided. At the end of the lease period, the car is returned to the dealer. The ownership remains with the manufacturer. This option only makes sense for short-term requirements.

It is always good to discuss finance options with car dealers and your bank before purchasing a car. Always analyze all the options before arriving at a decision. This way you are armed with the best options available to you based on your specific situation.

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Source by Mike Jones