It costs at least HK$200,000 - $300,000 to buy a car in Hong Kong. For some luxury car brands, the price can be up to HK$500,000 or more. You also need to pay attention to the cost of your monthly payments, interest rates, toll fee, expenses on fuel, maintenance, parking, car insurance, registration and licensing, which cost at least HK$10,000 per month.

Buying and owning a car can be very expensive. Apart form the cost of monthly payments, you also need to pay for the fuel, maintenance package, daily toll fees, parking space, car insurance (such as third-party liability insurance and Comprehensive motor insurance), first registration tax and Hong Kong driving license. If you find that the money in your bank account is not enough to cover the full list price for your dream car, going for car financing can be one of your options.

Banks and car dealerships often provide car loan options tailor-made for paying off the cost of your vehicle. Most car dealers have their own in-house financing schemes. Some people take out car loans to finance their car, which are actually a variation of personal loans, structured to factor in the depreciation of a car's value over time.

Car loans often require you to make a sizable down payment earlier in the term. The bigger your deposit, the lower your monthly payments will be. Personal loans, meanwhile, can be either secured or unsecured: the former is backed by assets you already own for the lender's security, while the latter is determined solely on the basis of your credit status.

If you choose to apply for a personal loan, lenders are likely look into your credit score rating. This is to ensure them that you have the ability to make your payments on time. Should you have a less-than-ideal credit score, you will have better chances in getting a car loan than you would a personal loan. Either way, poor credit means you get saddled with a much higher interest rate. Ideally you should settle as much of your outstanding credit debt as you can before you begin applying for any kind of loans.

Normally you need Hong Kong Identity Card, residential address proof, bank statement and vehicle sales and purchase agreement to apply for a car loan. You should understand your ability to repay and compare the loans' interest rates and other terms before applying for a loan.

Have you thought of settling your loan early to ease your financial burden? Check your loan's conditions before you act! Since early repayment would affect the amount of interest earned by banks and financial institutions, many loans have stated in the contract that early repayment charges apply. Borrowers should read the terms carefully to avoid financial loss.