Different Types of Car Finance

Different Types of Car Finance

Are you feeling overwhelmed by the options when considering car finance? You may not be alone, but it’s actually simpler than you might think. Different schemes are available, but this is only to cater to different people’s needs. As long as you understand what your own requirements are, and how the options differ, you should find it easy to establish what sort of finance to take out on your new vehicle.

PCP (Personal Contract Purchase)

Currently the most popular way of getting finance on a new car in the UK, this scheme offers the benefits of affordable monthly payments as well as protection from any unexpected drop in the vehicle’s value.

At the beginning of the agreement, the car is assigned a guaranteed value at the end of your monthly payment schedule. The finance company promises to honour this value, so after you’ve driven the vehicle for the given number of months and kept up with your payments, you have a simple choice to make. If the car is worth more now than when the value was agreed, you should be able to make a profit by buying it from the company and selling it on (or keeping it). Alternatively, you can let them take it back and trade it in for something that’s worth more to you. Read more

The Best Emergency Car Cover Deals

The Best Emergency Car Cover Deals

Once you find yourself a great deal on a vehicle and save money, why blow it on costly repairs when something goes wrong? A crucial part of your finance planning for a new vehicle should be the kind of emergency cover you put in place. Here are some of the best options available in the UK right now.

The AA

Probably the best known brand on our list, the AA has over 60 years of experience offering breakdown rescue services. In 80% of cases they are able to repair vehicles at the roadside, generally in under half an hour. Their reputation means you do pay a premium compared to some alternatives, however.

Green Flag

Another well-known name in the UK is Green Flag, specialising in not only very low prices but also a personalised service. Their 24-hour coverage is available within less than an hour, or they give you £10 cash back as compensation for the wait. They offer more different packages than most of their rivals since they are able to account for quite specific personal circumstances, which could save you money. Read more

Stretching Your Car Budget Further

Most of us would much prefer to cut the costs of investing in a new vehicle, but it’s not always clear how to get the best deal. Usually there’s some kind of time pressure when it becomes apparent you need to buy a new car, and you might feel rushed into making purchases that aren’t the best value. If you bear in mind some simple tips, however, you should be able to save money in several different ways.

Buy used instead of new – This is always one to be wary of, but if you know what you’re doing it’s definitely the way forward. Almost all expert car dealers will make their money buying cars they knew are bargains, improving them and selling them on. The low prices are out there; you just need to know enough about vehicles to distinguish high quality from the rest. A cheap car is only good value if it’s in great condition and will last a while.

Work on the car yourself – Again, this one is for those with some more experience when it comes to cars, but you can potentially stretch your budget a long way by avoiding costly repairs and cosmetic work. Many important things that need sorting on a used car can be easier and much cheaper to do yourself rather than paying a garage to do them. For example, if you buy a car that needs replacement registration plates, don’t waste money going through a costly reseller. Simply contact a legally registered and cheap online number plate maker to have your custom designs made with the correct registration. There are many more areas where you can do a similar thing. Read more

Car Finance Deals For Young Drivers

Car Finance Deals For Young Drivers

Most people between the ages of 18 and 21 are keen to start driving, since it can unlock many more opportunities including finding better job prospects and living independently. However, to buy a new vehicle on finance as a young person is not necessarily that easy. It’s only once you know how to prepare yourself and where to look that you’re likely to find the best car finance deals out there.

No credit score?

Credit checks are generally used before any kind of finance is granted, so with the relatively high costs involved with buying a vehicle these tend to be fairly comprehensive. For young people, credit checks are often a contentious issue because having no credit score is sometimes almost as bad as having a poor credit score. Companies offering finance are looking for evidence that their money is secure, so if you don’t have a good credit history because you’ve never borrowed money before, this can unfortunately do little to reassure them.

Improving your chances

There are various things you can do to improve your credit score if you’re starting from nothing, or even if you have a bad credit rating based on bad experiences with loans in the past. To begin with you will want to request a credit report yourself, which you can do online. This will tell you where you’re starting from and also let you identify any problems or errors with the information currently available about you. Read more

How to Get a Cheap Car Insurance Deals

How to Get a Cheap Car Insurance Deals

Car insurance can be expensive, and in fact it’s one of the biggest factors people tend to mention when they’re putting off buying a new car, or even getting started owning a vehicle. However, there are so many tricks you can try to get a better deal that most people could probably save money by following three simple steps.

1) Reduce your risk factor

To get a cheap quote from the outset you would need to be considered a low risk by insurance companies. This means doing everything in your power to reduce the perceived level of risk associated with your ownership of the car.

Things like increasing your security will reduce the risk of your car being stolen, which brings down the price (for example, parking it in a garage or fitting an alarm). When it comes to repairs, more common models are cheaper to fix so quotes for those will be cheaper.

Your skills as a driver will also be factored into your quote. Aside from having no points on your license or convictions for dangerous driving, you can improve your reputation and get a cheaper price if you complete more advanced driving qualifications like the Pass Plus test. You can even have your driving performance monitored by a “black box” fitted by the insurance company, and if you do well your cost will go down (but be careful this doesn’t backfire – if the box detects poor driving your costs will skyrocket!). Read more

Car & Van Leasing Vs. Buying

Van Leasing Deals

Weighing up the benefits of buying your new vehicle outright or getting a lease deal where you can pay monthly instead can be tricky. At first glance it basically it comes down to some straightforward maths, and you can calculate the cost saving in theory after doing a little market research. There are some great car and van leasing deals out there, as well as competitive prices for vehicles to buy.

However, placing a value on each of the criteria you consider when finding a new car is not so easy, and this is what you must attempt before you can do any meaningful calculations. Establishing which of your requirements are really essential and which would be an added bonus can make all the difference to making a logical decision. You also have the think about the potential long term and short term savings, and balance this against what your situation is likely to be in a few months or even a few years.

You may choose to start by ruling out the option of looking at leasing deals for your new car or van based on a couple of basic criteria. For example, if you know you’re extremely keen on owning the car yourself from the moment you start driving it, and you have the required cash available without having to take any kind of loan, you’re highly unlikely to benefit from leasing. Read more

How to Finance a Vintage Car or Classic Car Restoration

Classic car restoration

There’s somewhat of a secret that I ought to let you know about regarding purchasing a vintage car or using classic car restoration services, such as those you can get from restorers like Spellbound Cars. Many people struggle to find the funds for the initial purchase or the parts required to restore a classic car but in truth, this can be a lot easier than you suspect.

Indeed, classic car restoration is growing massively as it is now seen as an investment rather than just a hobby. Funds once used solely for art collections have now expanded to include this area, as a well restored vehicle can massively increase in value.

A shared passion?

The first option to consider is whether you have a friend or a relative with a similar interest in classic cars that can inject some cash into the project. It is always best if you view this as a passion rather than a money making scheme as buyers tend to spend more on cars from private collectors rather than dealers.

Read more

What Would You Do Without Your Car?

For a real automobile enthusiast, it’s hard to imagine getting by without a car. Many people really love taking care of their vehicle and take great pride in it, although it’s fair to say that most people just really feel that they rely on their cars for getting around during their daily lives. If you’ve ever been without your car suddenly, because it needed unexpected repairs for example, you might have had a taste of how stranded you can feel.

However, plenty of people have successfully given up driving on a day-to-day basis and ended up with a much better lifestyle. Could it be possible for you to do the same, and save money in the process? Here are a few of the benefits…

You can always get a ride when you need it

Just because you’re not the driver doesn’t mean that you can’t get around in a car when you need to. For one thing, you can make sure you have a reputable taxi service on call that you know you can rely on. This is ideal whether you need a late-night journey home from Manchester, a Bristol airport taxi to catch a flight, or even a cab to get you to your wedding on time in Derby.

Remember, getting a taxi is now so easy, you don’t even need to call an office to place your booking. If you haven’t tried booking a trip on a smartphone app yet, you might want to look into this as your first trip will often be discounted.

Cars cost a lot of money

Lots of people may instinctively object to the idea of getting taxis on a regular basis, because of course the cost of fares can add up. However, this fails to account for the cost of running your car.

Not only do you have to pay for the vehicle (a cost which many people spread out and pay on a monthly basis), but insurance, tax, fuel and maintenance costs also escalate quickly. By cutting out all of these costs, you may find that you still save a significant amount even when you have to pay for transport on an ad hoc basis.

Public transport may be better than you think

Traditionally, public transport tends to be widely despised by its regular users, but there is a reason why those people continue to use it instead of driving themselves. In fact, there are probably several reasons. It can be more convenient, it can be cheaper, you never have to worry about parking, and the journey can give you a chance to either relax or squeeze in a little extra work.

The benefits of your local transport infrastructure will depend on where you are, because some places are known for their great public transport systems which have had plenty of recent investment. Cities with modern bus, tram and train links that are designed to run efficiently and support large numbers of commuters will be the best places to try this, but not everywhere is up to that standard.

You could benefit from more exercise

Most of us could use a little extra time in our daily routines dedicated to exercise, especially those of us who drive regularly. Swapping your car for a bicycle or even just walking is ideal for people who live in cramped city centres, or even out in suburban towns. You’ll gain flexibility and control over your own journeys, not being so limited by traffic, plus every commute or trip out will count towards your daily exercise. This alone might be a great reason to finally ditch your car, save money and live a happier life.

It’s better for the environment

Last but not least, any of the above methods will usually work out better for the environment overall because you are not creating any additional CO2 emissions or other pollution by using public transport, cycling or walking. Even a zero-emissions electric car needs electricity to run, so producing this will have an impact on the world around us. Axe your car and you’ll be doing your best to help the environment.

Finance for Classic Car Restoration-The Necessities

When you think of a classic car restoration, images of classic movies with Steve McQueen or Paul Newman may stream through your mind. Perhaps you’ll even reminisce about Saturday drives with your grandfather in his old 1950s Studebaker that brings tears of joy to your eyes. Whatever the source of your love for older automobiles, there’s no cure for your passion once you’ve caught the classic car bug. There are some who were raised with an affinity for cars and the power of working with your hands to maintain a vehicle.

corvette-171422_640

Those men and women understand the inner workings of a car engine and have perhaps spent time studying older books to learn more about their favorite classic models. Those are the prime candidates for car restoration. A project of this size, both in money and in time, is not meant for the faint of heart. You must love a challenge as many of the steps along the way will leave those not fully committed frustrated, eventually abandoning the project. Car restoration is wholly rewarding, but you must thoroughly prepare to be sure you’re the right candidate for the job. Read more

Special Finance as a High Risk Loan

High risk car loans, often called “bad credit car loans,” or additional opportunity car loans are loans made to clients who have either no record as a consumer, a low credit score, or different flaws on their credit report that would cause a conventional money lender to turn them down.

euro-870757_640

Unlike traditional moneylenders, when you take out a high-risk car loan, the broker will search for a way to get you approved, not for a way to turn you down. But since these banks lend to individuals with bad credit, the financing cost is much higher than a conventional loan. Simply remember that if you pay this loan on time, the funding cost on your next conventional car loan will probably be lower because of an enhanced record as a consumer.

There are many companies that specialise in borrowers who require high risk car loans. Why do they do this? There are various reasons. Read more

1 2