When you want to invest in life with a vehicle but you can’t quite afford to buy a car outright, or maybe you just don’t want to use up all your savings, you can go for car finance. Finance is a lifesaver for many that need a car to get to work, take children to school, or for general life duties. Here are some of the top finance options for owning a vehicle
Hire Purchase Car Finance
Hire purchase (HP) is one of the best options to use when it comes to car finance. This option enables you to pick a car and pay it off plus interest gradually every month, sometimes you will be able to fund a higher spec or priced car than if you’re buying with cash, due to splitting the cost. Spreading the cost across a set period is convenient and the fact it’s usually a set amount each month means you can easily budget for the expense. If your circumstances change and you would like to pay off the finance early, you are free to do so!
If your aim is to own your car at the end of the agreement, hiring purchase car finance will enable you to do this. Not all car finance options offer this so make sure you go for HP if this is important to you. Another advantage of hire purchase is some companies offer car finance bad credit so you don’t already need to rely on your credit score to get a good deal.
You can also take out a personal loan to cover the cost of a car, but this might take longer to pay off if you aren’t organized with fixed payments. Some people get stuck between car finance and taking out a personal loan, a loan will often be organized by your bank and you will receive the full loan amount in one bulk, whereas finance will be arranged with a dealership and be held against a car. Make sure you read the rules and regulations on loans.
Drive the latest car with a lease plan and hand back your keys when you have paid everything off. This is ideal for those looking to use the car for a set amount of time and not keep the keys after, you will pay it off and it will no longer be yours. Unlike, hire purchase finance such as where you own the car at the end of the agreement. However, there is an option to lease another car when your agreement has finished.
There are many options to help you owe a vehicle and it is up to you to decide on the best one for your circumstances. Other options you can also use include personal finance and personal contract payments (PCP), however, you will not always own the vehicle outright if you use these finance options. It’s always best to check the terms and conditions very carefully.
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