Buying or leasing a car on finance is a great way to drive the vehicle you want without the worry.
There are pros and cons in doing so, and in this article, we’re going to explain 13 benefits of buying a car on finance.
Firstly, though, what is car finance?
Car finance is a way of getting behind the wheel of the car you want by paying fixed monthly payments.
It comes in several different forms, although the three most common are personal contract hire (PCH or lease), personal contract purchase (PCP) and hire purchase (HP).
You can read more about car finance and decide which type suits your circumstances by clicking the link below.
When you buy or lease a car on finance, you get to enjoy a whole host of benefits.
With a car finance agreement, your payments are fixed and your agreement lasts for how long you want it to. Therefore, you always know how much you need to pay and when you’ll be paying it.
There are no surprise costs or fees, and if you include maintenance costs in your agreement – which you can do with some lease deals – you can take to the road with complete peace of mind, knowing everything is already paid for.
All the vehicles we offer come with a £0 deposit option. That means, if you don’t want to or can’t pay a deposit, there’s no pressure for you to do so.
You don’t have to have excellent credit to get car finance. Whereas if you applied for a personal loan you may get turned down by the bank, there’s more chance you’ll get accepted for car finance.
We work with a number of bad credit lenders who help those with less than perfect credit. And we have a great track record in securing car finance agreements for customers with bad credit.
If you have bad credit or a less than perfect score, buying a car on finance is a great way to improve your credit rating.
By keeping up with your monthly payments, you’re proving to future lenders that you can pay your loan back.
In the future, that usually means that you’ll be accepted by more lenders, meaning your monthly payments will be lower.
By buying a car on finance, you can keep any savings you have for other purchases.
That might be making home improvements or treating yourself to a well-deserved trip away.
Another option is to invest your savings or cash to accumulate interest so you can enjoy it more later down the line.
As the cost of your vehicle is spread over fixed monthly payments, there’s no cash lump sum to pay.
That means that you don’t need access to thousands of pounds. And even if you do have the money, you can save it for something else.
With any of our finance agreements, you can part-exchange your current car. That means you don’t have to worry about the hassle of getting rid of it privately.
Whether it’s your current vehicle or your new one, when you buy a car on finance, there’s no worry about what you do with it after your agreement ends.
Depending on the type of finance you choose, you can either part exchange the car for another one, hand the car back and walk away, or keep the car as your own.
If there’s any equity in your car when you decide to trade it in – where your car is worth more than any outstanding finance – you can use that as a deposit to lower your monthly payments on a new one.
If you decide to buy your car on finance, you can usually get a better car than would usually be available if you decided to buy it with cash.
That’s because with most finance deals you’re only even covering the cost of a part of the car, and even a top-of-the-range model can come with low monthly payments.
If you decide to buy the car outright through a personal loan or with savings, you’re entirely responsible for the vehicle and any costs you may face in the future.
Whereas if you buy using car finance, there’s more security.
For example, if you add maintenance to your finance agreement, there’s no need to worry about servicing, MOTs and tyres.
When you buy a car through finance you have more flexibility than when you do with cash.
That’s because, depending on the type of finance you choose, you can either hand the car back, part exchange it for another or keep it.
When you buy a car on finance, it allows you to change your vehicle more frequently.
That means you can enjoy a new car every few years and stay up to date with the latest styling and technology.
With a newer car, it also means there’s less to worry about with reliability and fuel economy- so it’s cheaper to run.
If you’re now ready to start your car search, we can help. Just click the button below, find the car you want, send us an enquiry, and have it delivered to your door in 48 hours. It’s that simple.
We expect more than 51% of our customers to achieve this rate.
| Loan Amount | Total Cost of Credit | Representative APR | 60 Monthly Payments | Deposit Amount | Loan Term | Total Amount Payable |
|---|---|---|---|---|---|---|
| £7,500 | £3831 | 19.1% APR | £188.85 | £0 | 60 Months | £11,331 |
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
