Car buyers may be well advised to get in before the SSIA buying splurge gathers momentum later this year.

One researcher, IMC, estimates that as many as 18% of SSIA savers will spend money on new cars.

Seems relatively modest until you hear that Goodbody's economists forecast that as much as 1.1 billion of SSIA savings will be spent on cars. While the buying will start within the next few months, most of it is like ly to be spent in 2007 when most of the SSIAs mature.

One way of getting in before this wall of money hits the car showrooms is by taking out a car loan.

Indeed having an SSIA could also prove an advantage when it comes to negotiating such a loan.

For instance two lenders, EBS and One Direct, will charge different rates of interest depending on the borrower's circumstances. By showing them how much you expect to gain from an SSIA it could help to soften their cough.

They may well agree to charge you less.

One of the cheapest way to raise car finance can be by topping up a mortgage. However this can have its disadvantages in terms of financial discipline as payments are being spread over 10 or 20 years and a car is unlikely to last that long so you could find yourself effective ly paying for it even after it has been scrapped.

The next cheapest way is by way of personal bank loan as their interest rates are usually competitive.

However if you require a second loan, for say house repairs, banks will be reluctant to give a second loan while you are still paying off the first one.

If you pay back the loan early for whatever reason, some banks may charge extra.

Credit unions can also offer keen rates especially on small loans but you need to already have a savings track record with them.

Car dealers can also arrange loan deals for customers with finance companies. These can prove convenient as there are far fewer forms to fill and you don't need to disclose your financial affairs in detail.

However because the car is the security, should you break the terms of your agreement, the finance company has the right to take the car and it is illegal for you to sell the car during the finance term.

On the other hand these deals can have advantages with early repayments. Some finance companies will reduce the cost of finance rather than penalise you.

Financing through a dealer also takes the hassle out of shopping around for a loan.

Because they have access to a range of finance companies they might be able to spot a particular deal that best suits your particular needs and thereby save you money.

Be wary of deals that offer no deposit down and a low monthly repayment over a fixed term.

Known as Personal Contract Purchase agreements, these hit you with a large 'balloon'' payment for the outstanding balance and interest at the end of the term.

So after three or five years, when you are again shopping around to finance a trade-up, you may find yourself facing an even bigger loan than you thought.

There are also good reasons for buying before the SSIA matures.

Economist Colin Hunt expects that because so many people will buy after the SSIA's mature, there will be long waiting lists for models.

So if it's one of those new cars with a waiting list that you are dreaming about it may be better to get in early.

As you know when your SSIA will mature simply get a short-term loan which can be repayable out of the SSIA and such short-term loans should have lower interest costs.