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Desperate for a car but struggling to afford one? Here are finance options to get you behind the wheel.
1. Hire Purchase (HP)
Hire purchase requires a 10% deposit and regular payments until the full sum has been paid off. This means you don’t own the car until all the fees have been paid, but it is an easier way to buy-to-own than buying outright. Like any finance option, there may be interest to pay. Be sure to take this into account. Chat with a car finance specialist, like https://www.ccspecialistcars.co.uk/finance.php and find out rates what they can offer.
Ok, so this won’t buy you a car of your own, but if you need a car, at least this way you have access to one. It follows a monthly payment plan, but you are only leasing the car. The benefit of this is, if you can no longer keep up the payments, you can return the car and stop paying. There is a lot less pressure on you if you have unstable finances.
3. Use your credit card
A useful way to help buy a car. You’ll have to pay some money, something like £100 of the payment the usual way though, and some car companies won’t take credit cards. Some of those that do charge a card handling fee, so be sure you know exactly what your costs are going to be before you go for this method.
4. Peer-to-peer loans
Peer-to-peer loans are websites that allow their users to loan money amongst each other without involving financial institutions. The downside is that you still need a good credit score to access finance here, but if that isn’t a problem, then you have another option. Be warned though, peer-to-peer loans still affect your credit rating if you miss a payment.
5. A personal loan
Yep, this is the bank loan option. It isn’t as scary as it sounds, though, and some companies make the finance available immediately, so you aren’t going to miss that deal. You don’t have to get the total cost loaned to you if you only need a little extra to meet the full price. Shop around for a reasonable interest rate, though.
6. Personal contract purchase (PCP)
PCP works similarly to hire purchasing, but the monthly payments tend to be lower. Heads up, though, the total you have to repay is higher.
The loan you get through PCP is the difference between the car’s price when it’s new and the expected value at the end of your hire period. When you reach the end of your hire period, you get to choose what to do next. You can hand the car back and pay nothing more, or you can buy the car. Purchasing the vehicle at the end of a PCP hire period could be very expensive, but you don’t have to do this.
Whatever you decide, there are many options to finance a car for your family, talk to any car finance specialist, and you will be driving the kids to school in no time.