Have you been thinking about purchasing a new car or upgrading your current model? One of the increasingly popular ways to do this is to take out car finance, which helps to make buying a car more affordable. The payments are usually split into a deposit and a series of monthly repayments, either to pay the car off fully (hire purchase car finance) or with a large optional final payment (PCP) to own the car.
We have put together some tips to help you find the best cars on finance for your needs and situation, so you can drive away happy.
1. Decide Which Type Of Car Finance Is Best For You
Before you pick the car of your dreams, you need to choose your ideal type of car finance:
- Hire purchase – with this finance option, you usually put down a deposit to buy a vehicle and gradually pay off the full value and interest of the car. At the end of the agreement, you will own the vehicle and be able to keep it for the future.
- Personal contract purchase – PCPs are often available at car dealerships. This type of finance starts with a deposit, then monthly instalments for the duration of the term. At the end of the plan, you can choose to pay a lump sum to buy the vehicle or return the car to the dealership instead.
- Conditional sale agreement – these are similar to PCPs, except the final payment is compulsory and you do not have the option to return the vehicle.
- Personal contract hire – with his finance, you rent the vehicle from the dealership, so you never fully own the car.
2. Ensure Your Credit Score Is Up To Scratch
When was the last time you checked your credit score? If your credit rating is less than perfect, you may want to consider improving it with a few simple steps. Make sure that you are on the electoral roll, that all of your bills are up to date with your address, that you pay any bills on time and that you do not apply for credit too many times in a short space of time.
If you have exhausted all of these methods, you can also apply for bad credit car finance. The lenders that offer this type of finance tend to look at your affordability rather than your overall credit rating, so you may have a better chance of being accepted.
3. Research, Research, Research
If you are looking for the best cars that are available to you, research is key. You will need to assess all of the dealerships that stock the car of your choice, as well as the services they offer, the extra features, and the deals that they have. By researching all of the available options, you will be able to find an affordable solution that works for you. Do not just go for the first dealership that you find – take the time to look at all avenues before making a decision.
Finding the best cars on finance is a process and it is something that requires time and dedication, but by putting a bit of effort into your search, you could find something perfect.