Why Use Finance To Fund Your Car

If you are in the market for your next used car and wondering how to fund it? You may be considering opting for car finance, and here is why that could be the right choice for you.

If you are not familiar with car finance, it is the process of splitting the cost of your car without having to pay for it in one big chunk. It can be super helpful if you need or want a new car, but do not have the cash or the desire to pay for it in full.

Car finance can help you afford a car more easily and with less hassle, as well as renting you can often afford a nicer or a newer car than you would have when paying outright.

There are lots of different options for car finance, and which one is right for you will depend on your circumstances and what you are looking for, we will run through a couple of them here and now for you to see.

PCP

Personal contract purchase is a popular type of car finance, whereby you pay a despot and the balance is spread over a number of months or years. At the end of the agreement you will usually have a few different options, such as handing the car back, using it against your next agreement, or paying a balloon payment to clear the balance and to own the car.

HP

Hire purchase is similar to PCP in the structure, but at the end of the agreement, you will own the car, so the monthly payments are usually higher as a result of this. But, worth it if you would like to own the vehicle at the end of the agreement.

Bad credit car finance

Bad credit car finance is for those who have poor credit or even no credit history at all. There are specialist lenders out there that work with people who have poor or bad credit, to help them find a finance deal that works for them.

It can be tricky to know which type of finance is right for you, and it all depends on your own circumstances and what you are looking for. If you need some help and guidance come and speak to a member of the team and we will be more than happy to help you find the finance deal that works for you.

Benefits of car finance

There are so many different benefits to car finance, the first one being that you haven’t tied a large sum of money into a vehicle, and you can keep that money in savings or towards something else.

Another benefit is that deals are flexible and can be built to you, so if you want to put in a bigger deposit or have the agreement over a longer period of time, you can do.

Because there are so many different deals and different lenders out there, it means that car finance can suit a broad range of people too, whether you have proof credit, you are self-employed, you rent or you are a student, there are specialist lenders out there that may be able to help you find finance and fund your car.

Things to consider

If you are considering car finance there are a few things you should consider before you dive in and take out an agreement.

Budget

Think about how much money you would like to spend per month on your car. Budgeting for this is totally different to how you budget for buying outright. Crunch the numbers, and think about and plan how much per month you can comfortably spend on a car, and then take it from there. Also, when you head out shopping, make sure you stay on track and don’t be swayed into spending more than you have budgeted for.

Type of cars

What kind of cars are you looking at and do you have a shortlist? It can save you time and hassle if you have done a little bit of research beforehand and it also means you can get an idea of costs before you head out into the real world and look at cars in real life.

Insurance costs

Get a quote on your insurance for the car you are considering as often it is a forgotten extra that can land you in hot water! It is always best to run a check and see what the numbers could look like, so there are no nasty surprises when you have purchased the car.

Age and Mileage

How old is the car and what is the mileage? Make sure these aren’t over the odds and you can compare these online as well. You will also want to look out for a service history so you can be sure that the car has been looked after well.

AA Promise

We offer an AA dealer promise, which gives you peace of mind when you buy, including at least 6 months MOT and 12 months AA breakdown cover, as well as a whole host of other things. Having something like this included in the sale means you have that reassurance that if anything does go wrong, you have got someone there for you.

If you are considering car finance, we would advise you to do your research and make sure it is the right option for you. It won’t be the right solution for everyone, but there are plenty of benefits, as you will have read!

Our mission is to make car finance accessible and easy, so we will do everything we can to make sure you have everything you need and that you are confident in your decision and purchase so that you can drive away happy.

You can check out the range of cars we have online, as well as starting your finance application, or you can come and visit us in person, and speak to a member of the team where we will be happy to answer any questions you may have.