When people first hear about cars on finance, a lot of people begin to panic! However it does not always need to be this way! Having a car on finance can prove a lot cheaper than buying a car out right! There are various different options of having a car on finance.
Personal Contract Purchase
If you like to drive a new car, then you should consider a person contract purchase. A personal contract purchase is when you get a car on finance and make monthly payments to the finance company. You will have to go to a car dealer who you can decide with how much you want to borrow and how much your monthly instalments are going to be. You can get extremely good deals on personal contract purchases, where sometimes your car insurance can be included in your monthly payments making it cheaper for you. At the end of your three year contract, you can then decide whether you want to pay for the amount off in full and keep the car. If your circumstances have changed and can no longer afford to keep up with your monthly payments or cannot afford to pay the rest of the amount off then you can hand the car back to the dealer and walk away. Or you are even able to trade the car in for a new car!
You can use this option on new and used cars. If you find the car which you want but cannot afford the price outright, then you can make an agreement with the dealer to pay for the car in monthly instalments. The dealer will contact a motor finance company who will also check your credit rating, if they are happy with your credit score then they will pay for the car. You will then have to pay the motor finance company back in monthly instalments with interest on top each month.
Personal Car Leasing
You can decide to get a car on finance as a temporary thing, whether it is a day, a week or even a month! You may find yourself not needing to drive that often and only on odd occasions. So instead of having all the bills of running a car through the year, you can decide on a personal car leasing option. By getting a personal car on lease, you will not have to pay for any of the cars MOTs or tax; you will only have the fuel bill for what you use. Hiring a car can be a much better, cheaper and reliable way to have a car.
UK Car Contracts offer affordable business contract hire and personal contract.