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Buying a car is freedom incarnate!
However, many of us believe this freedom is beyond our reach, because we don’t “have the money for a new car.”
This couldn’t be further from the truth. Car financing is here to make your freedom dreams a reality.
Say goodbye to the smelly bloke on the tube in Essex who’s always eyeing you out!
The roads are your oysters, and car financing is your butler, cracking open those oyster shells and pre-hot-saucing your delicious treats.
What is car financing?
Car financing is a deal made between you (the buyer of the car) and a car dealership or a direct lender.
Regardless of the source of the financing, the deal made remains the same.
This deal stipulates that you (the buyer) will pay a decided upon amount to the lender until such time as the amount is paid in full.
This full payment usually results in the ownership of the car being transferred into your name.
And then, hey Presto! You own a car!
What are your car financing options?
Finding the best car finance to suit your unique needs is an overwhelming task.
But be wary that being overwhelmed doesn’t leave you underwhelmed by the final decision.
In areas of the Uk, like in Essex, you get in-house car dealership financing and private lending. The type of car finance you will receive depends on where you’re getting it.
In-house Financing:
Hire Purchasing (HP)
When you buy a car using Hire purchasing, you are agreeing to a set amount of monthly payments on your car, plus some kind of deposit or down-payment on your vehicle.
These deposits can be as low as 10% of your car’s value. However, it is important to remember that the higher your initial down-payment, the lower your monthly payments will be.
HP is useful for both new and used cars, is readily available in Essex and the UK at large and gives you the consistency of fixed monthly payments.
The major down-side is that the vehicle does not truly become yours until the final payment is made.
Personal Contract Purchasing (PCP)
Personal Contract Purchasing is a popular way to finance a car.
PCP is generally cheaper than other forms of car financing.
The reason for this is that you are only paying for the depreciation of the car over the given contract period.
Basically, you only pay the difference between the car’s worth at the beginning of the contract and its worth at the end. The idea being that, at the end of the contract period, you will upgrade yourself to a newer vehicle.
You never become the owner of your car though. If you want to own the car at the end of your PCP contract, you will need to pay an optional final payment, that is made of the remainder of the price of the vehicle when you bought it.
Private lenders:
Private lenders, like banks, offer a large range of financing options for you to work with.
You can buy a car using a personal loan, a credit card or a home mortgage.
These options do not offer the level of flexibility and benefit that Car Financing offers, but they are a good option to look at regardless.
How do you know which car financing option is best for you?
Deciding which type of financing works best for you depends on a range of factors. Finding the best way to buy your car is simple, just decide what’s most important to you.
Best Financing options for:
- Long-term car ownership: Hire Purchasing
- Low Monthly repayments: Personal Contract Purchasing
- Flexibility: Personal Contract Purchasing
- Bad Credit: Hire Purchasing
Finding a vehicle that properly suits your needs and personality should not be based on your pocket. You deserve the car of your dreams, even if your bank account looks a little nightmarish.
Spending time looking into which car financing options best suit your needs gives you the power to choose how to finance your future.
Drive your dreams to Essex and beyond!