Yes, buying your next car is a big expense. But, it doesn’t have to break the bank. More and more car buyers are choosing to fund their next purchase with car finance. Why? Because with a few simple, sensible choices, it can be an easy, affordable way to buy a car.
Aside from the fact that buying a car on finance lets you leave your savings safely in the bank, there are also several other advantages to taking finance instead of paying cash. We’ve listed the top three:
1. You can buy better than you could afford outright
Love prestige car brands, but always been put off by the price tag? Buying a car on finance makes even the costliest of car models much more affordable, by spreading the payments over a period of time.
If you were thinking about trying to save money by buying a slightly older model, remember; this can result in more expensive repairs down the line, which amounts to false money-saving in the long run.
By spreading the cost over a longer term, this makes your car much easier to pay for – and you will always know where you stand when it comes to monthly payments. You’ll also know exactly how long you’ll be paying the loan for, with no hidden costs or unwanted (financial) surprises!
2. Car finance is much easier to get than a standard loan
It’s as simple as that. It’s a lot easier to get approved for car finance than it is for most standard bank loans and credit cards. Even if your credit history is exactly squeaky clean, there’s so many options out there – it’s highly likely you’ll be approved for one of them.
There’s even options for people with no credit history at all – usually a total no-no when it comes to borrowing money. Whatever your situation, there will be a solution for buying a car on finance.
3. Enjoy the benefit of a fixed APR
Our third key benefit of buying a car on finance is that whatever APR you get, it’ll often be fixed for the entire duration of the term – that’s right up until the end of your loan.
This removes any worries you might have, or any wondering how high your repayments might go if interest rates rise. With a fixed-rate offer, you and your loan will be unaffected by changes in interest rates. This means you can have more confidence in these car loans versus any other types of borrowing, i.e. loans that don’t have a fixed monthly repayment amount.
… And a half – car finance could change your life
Ok, so that might sound dramatic, but consider this – if you haven’t got piles of cash lying around (and let’s face it, who does?) you’re probably unable to buy a car outright. Saving takes months of even years, so if you’re in need of a car right now then yes, car finance could very well change your life.
If you’re thinking about buying a car on finance, remember these main benefits. If you’re ready to talk to a specialist finance advisor about your options, including HP, PCP and 0% interest. Call today on 0161 825 9678 or visit our Finance page.