We’re all going through an uncertain economic period and one that looks set to continue for a while yet. Whilst the recession has caused prices to drop, businesses to go bust and huge levels of funding from government, other commodities have boomed such as oil and food, causing other spending on luxury items to dramatically slow down.

The demand in oil came from a rise in the world economy which has been growing steadily this century, especially in China and India. In these countries living standards have improved with ownership of vehicles, domestic heating and improved public transport. When demand rises, so does the price as there are inevitably more people in need of it.

The food boom developed in a similar fashion. Between April 2007 and April 2008 the cost of food increased by 50% in world markets. Whilst prices have dropped since then, they have only fallen by an average of 10%, which is still well above the levels in 2000, despite the current recession. Similarly to oil, the demand for certain food groups have increased in China, India, Brazil and Russia which accounted for 80% of the rise in the last five years. Whilst these are just some of the reasons for increasing costs of living, it can be difficult to allow for the things in life you really want.

So with uncertain times still ahead and significant increases in the things that we find essential, how can you save on that new car?

Use dealer finance as the best car loan

Carlyle Finance is an independent motor finance organisation that enables you to purchase your new car where you make monthly repayments to spread the cost. Using dealer finance is arguably the best car loan arrangement, as it keeps your credit line with the bank free, meaning you can still take out a bank loan should you need to meet other needs. It also allows you to use your savings for emergencies. Please visit www.carloanadviser.co.uk for further information

Search online

Although the scrappage scheme is coming to an end, there are plenty of bargains out there to be had. In 2010, Carlyle Finance is launching a new innovative website, allowing you to search many of its supporting dealer’s stock lists so you have a wider variety of choice, making it easier to find your ideal car and compare prices around the UK.

Take advantage of Time Out

At any Carlyle Finance supporting dealership, you can request “Time Out” when taking out dealer finance- where you can opt for one month free of making payments a year, to have a break and use the money for something else. You may want to take this time to service your car or send it in for an MOT. If this doesn’t suit you can use the payment break to ease the cost of Christmas or a holiday. You still make, for example, 36 payments but that would be over a 39 month period (one time out per year).

Some say the economy will stabilise soon, whilst some are a little more sceptical. Until we know for sure, you can rely on dealer finance as the best car loan for you.