The success of car finance plans

2014_Lexus_CT_200h_016_57648_42747_low

Long gone are the days when people save up to a buy a new car. Just this September £2.64 billion worth of new cars were bought on finance schemes when the new 65 plate registration came out.

With finance and leasing schemes offering great deals on the newest makes and models, more people than ever are choosing not to spend their savings on owning a car anymore.

Buying a new car on finance is more popular than ever. Figures from the Finance and Leasing Association suggest that around 8 in 10 cars are now bought on finance. With big dealers offering amazing payment plans and corporate employees like the NHS offering leasing schemes it’s easy to see why.

Saving up to buy a new car outright is expensive and often can limit your options as the newest cars are hugely expensive. With a leasing scheme you can put down around £2000 and set up monthly payments of £200-£300 and be driving around in a brand new top of the range car.

This year sales for cars on finance schemes are up 10 per cent with so many attractive finance options around that it can be hard to choose. There are a few different finance options. Whether you go for a hire purchase finance plan or PCP scheme is up to you as both have their benefits.

Hire Purchase

Hire purchase is where a loan is secured against the car so you don’t own the whole vehicle until the final payment is paid. The monthly payments are set over a certain period which can be from 12-60 months and you have to put down around a 10% deposit.

PCP

A PCP is really popular at the moment and often has lower monthly payments. It works out that you agree to pay the difference between the car’s sale price and the price at the value at the end to sell it back to the dealer. You can take out a car on a PCP for a shorter term from 24-36 months and at the end of a plan you can either hand the car back, get a new deal on a different car or pay the existing money left over and own the car.

Car finance plans have really gone from strength to strength and offer those not in a position to buy a car many more flexible and affordable options.

4 Tips For Getting A Car Loan

IMG_0312

When it comes to applying for a car loan, regardless of whether it’s through a bank, dealer finance or other institution, the criteria are designed to ensure you’re a risk worth taking. Ideally, you will have a solid track record, but even if you’ve never had a loan before, have a bad credit history or limited funds in your account, here are four tips for getting finance.

Read the rest of this entry »

Appraising a New Approach to Finance Leasing

2014 Chevrolet SS

While it may sound like yet another generic, business term, asset financing is something that holds genuine value in the world of entrepreneurship and business start-ups. It essentially refers to capital that is released to start-ups by lenders, for the purpose of investing in assets that will help them to execute their business plan. Whether this is a new computer or a commercial fleet, it is a necessary investment that enables your business to accumulate wealth and generate revenue.

Read the rest of this entry »

Make a Positive Change to your Finances

Many of us try to implement positive lifestyle changes throughout our lifetimes. That’s definitely how it feels for me. That’s why I promised myself I’d get my body and my finances in shape this year. While I’m dreading all the cardio and weightlifting that comes with the former, I’ve got a clear vision of how I’m going to handle the latter. And I’ll launch my plan by refinancing my auto loan with Wells Fargo.

Refinancing a vehicle loan pays off your existing auto loan, just like refinancing a home mortgage. But it’s much faster and simpler to refinance a vehicle loan. Interest rates on auto loans are the lowest they’ve been in a long time, thanks to current FED polices. So it’s a great time to consider refinancing your auto loan to help your money stretch a little further. Maybe a lot further.

You might also consider consolidating your auto loan and other debt into a fixed-term loan. This gives you the convenience of making just one monthly payment to a single creditor as opposed to making multiple payments to many creditors. Consolidating your debt can also significantly reduce any high interest rates you may be paying on your individual loans. Decreasing your interest costs can save you money both in the short term and over time.

Whichever route you choose, it’s easy to get started. Just jump online and start researching banks, credit unions, and vehicle dealerships, and any other potential creditors to find the best rates. Hopefully, it won’t be long before yours and my finances are back on track. If this works out the way I want, I might even get to that cardio and weightlifting.

Or not.

Top 6 Tips for First Time Car Buyers

First car.

When buying your first car, you will probably feel a little overwhelmed. There are so many things to think about when purchasing any car, but when you are getting your first car, these decisions seem even more important. Keeping these tips in mind can help you when purchasing your first car.

Consider Your Insurance Options

Almost every vehicle on the road must be insured. When you are looking at getting a new car, you will also want to consider buying new car insurance. You may have previously been on your parent’s insurance, but this isn’t always the most affordable option for you. Getting good car insurance can help you significantly if something were to happen to your car.

Don’t Forget to Negotiate

The art of negotiation is slowly dying. Many people don’t feel the need to negotiate their car prices anymore. However, if you do choose to negotiate, you will likely get a much better deal than if you just take the sticker price. Whether buying new or used, try out your negotiation skills when purchasing a new car.

Shop for a Loan

It may be enticing to get a car loan through the dealership, or even go with your normal bank for your loan. However, if you do a bit of shopping around, you may find a better interest rate somewhere else. The interest rate that you get will help determine your monthly payments. Having a great interest rate is important for those looking to buy a new car.

Look at the Options

Though you may feel that one type of vehicle is best for you, take the time to look around. You may find something that you hadn’t thought of before, for a great price. 

Think of the Pros and Cons

Has the vehicle that you are considering been recalled recently? Is there something about the vehicle that may increase your insurance rate? If you are looking at a used car, make sure you find out any damage the car may have had. Can you get a discount on your taxes for this particular car? Going over the pros and cons of your car choice can help you make the right decision.

Have Fun

Don’t forget to have fun while looking for the perfect car. Though it may seem like a chore, it is also a great adventure. Buying your first car is something you will remember for the rest of your life. Keep your car buying experience fun.

If you are buying a car for the first time, use these tips to make sure you bring home a winner. Do you have any car-buying tips to add to this list?

Related Posts