Buying a car has never been more affordable, although if you’re using savings to finance your purchase, it can still leave a sizeable dent in your nest egg. That’s why arranging car finance makes a lot of sense and offers a number of advantages. Firstly, with a car finance deal, you can spread the cost of buying the car over a period that is manageable (typically from 12 to 60 months) and at a fixed monthly sum that suits your pocket.
Along with your mortgage, utility bills, and any other fixed outgoings, your car repayment becomes part of your monthly budget, although compared to a mortgage your car loan will be paid off much sooner! Another big advantage of car finance is it enables you to buy a car that may otherwise be out of your price range, whether you opt to go for a newer model or buy the make and model of car you’ve always wanted but could never previously afford.
One popular form of car finance, hire purchase (HP), is where you put down a deposit and pay off the balance over an agreed period. Two other car finance options include lease purchase and personal contract purchase (PCP). Each product differs in the way you fund the cost of the car and certain conditions apply. Which one works best for you will depend on your personal circumstances and your car usage.
One more benefit worth bearing in mind is that you can arrange car finance from the comfort of your own home. Everything can be done online, or by phone if you prefer, and once your application is accepted, you’ll know exactly where you stand. And if you’re looking for car finance in Surrey, the team here at Wheelbase will be more than happy to offer you advice and facilitate the purchase of your next car.