More and more people are looking to buy a car on finance rather than paying for it outright. Here are some ways that this option can be a benefit.
The popularity of car finance as a method of payment for a new vehicle has been rising. Of course there has to be a reason why people are choosing to have an ongoing bill for their vehicle, whether it is new or used. So what are the benefits of car finance that these drivers are seeing?
First of all, the most obvious benefit is that you can buy a more expensive car that bit sooner. If you do not have the money up front for the vehicle you really want then negotiating a finance deal means you can still get it and then pay it off bit by bit.
Even opting for a used car can prove to be expensive if it is in a good condition but luckily Car Shop can offer competitive finance deals on good quality vehicles.
It simply isn't worth going for an older model of the vehicle that you want that has done many thousands of miles just to make sure you can cover the cost in one transaction. What you will find, more often than not, is that you will still be shelling out frequently for repair bills that could potentially cost more than what you would have paid on a finance deal anyway.
On top of that, in a worst case scenario, you could eventually find yourself in a situation where the vehicle fails its MOT and it costs more to fix it than sell it on. However, if you go for a more expensive car in better condition from the off then the chances of this happening are considerably reduced.
Some may opt to take out a bank loan to pay for the car they want but when you consider how the interest can build up then it is well worth looking at how opting for car finance payments will compare to this. You may find that a car finance deal means paying less in the long run for your car.
What is also advantageous about the way that a car finance deal is set up is that you will always know exactly how much you need to pay for your car each month and how long you will need to do this for. With a bank loan you do not always have this certainty and if it is secured on something such as your house then it can be more risky to this other investment should you default on payments.
There is also the benefit of fixed APR if you get a car finance so, unlike traditional loans, you do not need to worry about your repayments increasing because of interest rates going up.
Additionally, those with a poor credit rating can often still get a car on finance and if they can make these payments then this can help to turn around their credit rating. So there is also another economic benefit to choosing car finance.
Car finance is also a great option in terms of time-saving. With Car Shop you can have a finance deal arranged very quickly, it does not take days of processing and handing over loads of personal information for a decision to be approved. The company says that upon discussing a car finance deal, it aims to call back with a decision in around ten minutes.
While borrowing from a high street bank means you and a banker will have to work out how much you can borrow, with car finance deals it is much easier. At a bank you would have to fill in a lot of forms and answer many personal questions before you can fully assess how much you can borrow. Even then, you have to think carefully about whether you can realistically meet the repayments needed for each month. If you arrange a car finance deal directly with a company, however, then you and an expert can discuss a plan that best suits your needs and capabilities in terms of repaying what you owe. There is no one size fits all approach at Car Shop, meaning that your plan will be tailored just to suit you.
- On: 09 July 2014
- By: CarShop
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