If you have you have set your heart on an expensive car and have been looking at car loans then credit purchase sometimes referred to as lease purchase may be the way forward. Lease/credit purchase works in such a way that you make regular Credit-Cards/What-is-a-credit-card.aspx" title="monthly payments">monthly payments and at the end of the term you pay the deferred amount in one lump sum.

There are a few differences between lease and credit purchase, lease purchase has a contract length of 2-4 years and you can pay off your agreement at anytime. Credit purchase however, can run for 5 years and is great for people looking to have a longer finance agreement. Due to the length of the agreement you can usually get a decent rate and lower monthly repayments.

Neither of these options allow you to return the car to the dealership at the end of your contract so remember you WILL have a final balloon payment, one that can be considerable depending on the choices made at the outset of the agreement. These options are great if you want your new car now and you are willing to save over the contract period to make the final payment.