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
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
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
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.
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
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.
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
Perhaps you have seen the term ‘special finance car loan’ online when you were shopping around. If you are not familiar with the term, what it means is that car loans are available to people with poor or bad credit. The most recent statistics tell us that sixty percent of all consumers have less than perfect credit. These consumers are not typically allowed to borrow money from traditional banks because banks check credit ratings and flatly refuse to loan people with bad credit money. Persons with bad credit are considered to be ‘special’ cases, so hence the term special finance car loan was contrived.
Individual loans for car finance are widely available today. As the economy has taken another turn for the worse, more and more people are struggling financially. Many people are falling behind on their bills and cannot pay off their credit balances on time. This leads to the decline in their credit rating, making it impossible to buy a new car, as traditional banks refuse to lend them money. However, thanks to the special finance car loan the typical consumer who is having money troubles can drive the car of their dreams as many lenders have emerged over the past couple of years offering to lend money to ‘high-risk’ individuals. Read more