Car finance. What is it? Not as mythical or magical as you think. Here are the answers you have been looking for in one handy blog post.
Car finance is the process of funding your car whereby you borrow money and repay it over a number of months. It is all pre-agreed and the amount you repay each month is locked in from the start, so there are no hidden surprises along the way.
There are however a few different types of finance you should be aware of; Personal Contract Purchase, Hire Purchase and Bad Credit Car Finance. They are the main headliners in the finance world, and each has its own merits, of course.
Finance is a great way of funding a new car when you do not want to pay the sum outright. This can be for a variety of reasons, but the most common ones are affordability and investment.
Saving for a car is expensive and time-consuming. If your old car gives up the ghost or you just spot one that you would really like, you may not have the funds to hand to pay for a car outright. We have also noticed over the years that car finance can often mean you are able to afford a nicer or newer car than you would if you paid for it outright.
Plus, investing that much into a car in one go can be daunting and leave you with little money for other activities and plans.
Now, we know that car finance is not for everyone and we would always advise speaking with an expert, we have those in house, to find out what your options are if you are eligible and what the likelihood is of you being accepted.
That is an outline of finance and the options, we will be posting more about the different types of finance and their benefits in the coming months, so keep your eyes peeled.
In the meantime, if you want to find out more about car finance in Essex, get in touch with a member of the team at LMC.