Advice and Tips

Is car finance for me?

Advice and Tips // 31 March 2016

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Purchasing a car outright might just cause a dent in your pocket, which is why many people are choosing to apply for car finance in order to get the car of their choice.

Not only does car finance allow you to keep your savings intact and secured in your pocket but it’s also got other useful reasons for using it.

Using car finance can enable you to get a car that may otherwise have been out of your price range. Some people may choose to invest in an older model of car and this can also be a good option as it will not have the same costs a brand new car is likely to have. However, choosing to take out car finance means that the cost will be spread out over a long period of time and you will not be expected to pay a bulk amount up front. For some this can make it easier to pay for a car. It can help you know where you are in regards to your monthly payments as there is an organised structure. This then also means you know how long you will be paying your finance back for until it is completed.

One of the key differences between car finance and a bank loan is that financing a car is significantly easier. Even if you have a bad credit rating, you may have a higher chance of getting car finance. Another point to consider if opting for car finance is that whichever car you choose to purchase, the APR that you receive will be fixed to the length of the finance term. This can help you avoid any unnecessary worry you may have in regards to interest rates going up as you will not be affected.

When you choose to get your car on finance, you will pay less sales tax because you didn’t actually purchase the car. Warranties that come with the car generally last the course of the lease as well as the maintenance costs. This means that you can have an expensive car without paying a large amount of money for it.

With this information at your fingertips, we are sure you will feel a lot more confident about taking out car finance.

If you would like to purchase a new car, no matter what the cost, then financing can be a very useful option for you.

If you would like to discuss anything about car finance further, don’t hesitate to get in touch.