Car finance is a great way of purchasing a car. You don’t need to have all the money on hand. Purchasing the car outright is becoming less common these days. You simply place a deposit and follow it up with a series of monthly payments.
But the question commonly asked is how much can you get on car finance?
The answer is simply what you can afford for the type of car you want.
When you apply for car finance, you will be asked to go through a credit check. For some finance companies, it will be a soft credit check and others, like Hippo Motor Finance it will be a hard credit check to give them an idea of your credit history.
This is done because lending car finance is always a risk for the finance company and those with good credit are less of a risk. Once the credit check has been completed and the finance company has your credit rating, you will either be accepted or rejected.
In the present financial climate, it is likely you will be accepted for some form of car finance. There are a variety of options available including no deposit car finance and bad credit car finance.
All you need to know is the car you want or the type of car you want and what the budget is that you can afford. From there, an agreement should be drawn up that suits your requirements ensuring you can afford the finance being lent to cover the cost of the car.
When it comes to a finance company financing your car, it all depends on affordability. You can get however much you can afford on car finance on any sort of car. It doesn’t matter whether it is a city car, a saloon, SUV or super fast supercar, as long as you can afford it, you can get it on car finance.
There are different forms of car finance and each requires different things from you. Personal Contract Purchase (PCP) is the most flexible of the finance options and offers a few choices at the end of the agreement.
You can place a deposit down in a normal PCP agreement, although there are no deposit options. This is followed by a series of monthly payments for the duration of the agreement and then at the end, you get to choose. There is the choice to simply hand the car back without needing to pay anything extra. This is a good choice if either you want a new car or you can’t afford the final balloon payment.
The balloon payment, also known at the Guaranteed Minimum Future Value is worked out at the start. It calculates the likely value of the car by the end. To take full ownership of the car under a PCP agreement, you must be able to pay that balloon payment.
The other popular finance option is Hire Purchase. This one is less flexible than PCP, but also less hassle for you. It does not have a balloon payment at the end, but that means the remaining cost of the car is folded into the monthly payments making them higher. At the end of the agreement, you take full ownership of the car without further payment required.
Whichever car finance option you choose, if you can afford the deposit and monthly repayments, you can drive away with ease. Enquire with us and our staff will work hard with you to find the right car finance option for you.
We expect more than 51% of our customers to achieve this rate.
|Loan Amount||Total Cost of Credit||Representative APR||48 Monthly Payments||Deposit Amount||Loan Term||Total Amount Payable|
|£7,500||£3019.16||19.1% APR||£219.77||£0||48 Months||£10,519.16|
We are a broker not a lender and our registered office is Trident Park, Trident Way, Blackburn BB1 3NU. Our contact number is 01254 919000