Getting the right finance deal for the used car of your dreams can save you a packet or, if you get it wrong, as much as double the cost of your car!

To decide which is the best option for you honestly assess your own financial situation. Do you have an excellent credit history? If you have you have the full range of choices. You will be offered finance at lower interest rates and by more institutions. If your record is less than excellent your options will be limited, but whatever you choose, always ensure that you can afford it, especially if your car is used as security for the loan!

Another thing to bear in mind before you decide which finance deal to opt for is how long you plan to keep your car. If you intend keeping it longer than three years, then a straight loan is probably best and cheaper too in the long run.

Take a quick scan on the web and you'll see that there's a plethora of deals available to finance car purchases. Banks and building societies are queuing up to offer great deals on car loans, but the disadvantage with those institutions is that they tend to play it safe. Unless you have an excellent credit record you are less likely to be able to easily get a car loan from a high street financial institution.

There are also car finance companies that sell cars. If you have a less than excellent credit record, this can be a good way to get the car you want at a reasonable price. Again, think of this for the long term and a period of three or four years, as because of depreciation and loan costs you will lose out if you need to sell in the short term.

Before even considering how to purchase your car you need to know how much you can afford each month. You also need to ensure that you can afford the running costs. There's insurance that's a legal requirement - as is road tax, and your vehicle must be roadworthy, so there's the service and repair costs too. Bear this in mind and ensure that you have enough left each month to pay for running costs after paying for your finance.

There are no easy answers for choosing the right car finance deal. It all depends on your financial circumstances, how long you want the car and what car you want. But, one thing is certain always make sure you can afford the repayments! Don't end up with a damaged credit history because you have to default and also lose your car!