Buying a car on finance is most common these days, and nearly
80% of the UK vehicles are bought on finance. To your surprise, you can also
buy a used car on finance. One of the common mistakes people make is not
looking into the finance options available in the market before purchasing a
vehicle in a car dealership. Let us get in detail about the various finance
options available to buy a car and the best option to pick.
Is It The Best Idea To Buy A Car On Finance
It is totally up to the buyer's wish to pick a finance option or
buy it with cash. But you should be smart enough to know well about the finance
agreement and the interest before signing the contract. Most of the used car
dealers are providing finance options for their customers to buy the vehicle.
Make sure the interest rates offered in those circumstances are affordable.
There are chances you might get scammed here.
Another essential thing to note if you are buying a vehicle at finance is that you are not the car's legal owner until you pay back the loan amount. The finance company has all the rights to get back the car if the loan has not been paid on time (commonly known as the outstanding finance on the vehicle). You can also make a car finance check before buying
a used vehicle to the vehicle's financial status.
Can I Go With Hire Purchase Finance To Buy My Dream Car?
Every finance agreements has its pros and cons, and it is essential to know them before you get into any kind of finance. Also, it is essential to check if a car is on finance before the purchase. It is because if the used car you have eyed already has outstanding finance, then it is a red alert to escape from the deal. If you are making the hire purchase finance, then you have to pay 10% as a deposit and the pending sum as a monthly payment within the agreed period of time.
Usually, the hire purchase finance is arranged by the car dealer itself; hence it is an easy and quick finance option. Also, the deposit is only 10% which is also quite affordable. However, you cannot own the vehicle until you pay the final agreement and the interest rates tend to be a little high for shorter contracts. So ensure that you are reading the agreement carefully.
What Are The Other Ways Of Financing My Car?
The best car financing option differs from person to person, depending upon the circumstances and needs. Apart from the hire purchase agreement, you can also go for PCP and the personal loan option. PCP might look a little cheaper than the HP every month, but you have to pay back the ransom at the end of the agreement that will feel a little heavy to your pockets.
The other option is the personal loan, where you can get a loan
from your back and get your vehicle. Here you are the one who is going to
choose the amount that has to be paid back to the bank each month, and it is
straightforward for you to access the left balance just by accessing your bank
account.
Can I Pay Back The Finance Early?
It depends upon the type of finance agreement you make, but most of the finance agreements are easy to close at the earliest if you are willing to pay back the pending amount. But there are certain conditions and costs (such as early payment charges) you have to make if you are about to close your finance early. So make sure what they are exactly and what you have agreed.
How To Find Out If A Vehicle Is On Finance?
It is one important factor to consider if you are buying a used vehicle. The vehicle finance check is the best option to make to know if the car has any pending debt or not. It will tell you the type of agreement the vehicle has with the finance company and the amount that has to be repaid
But how to make one? Car analytics is with you. Enter the vehicle reg number and get a car history check, which will tell you the vehicle's complete history along with the outstanding finance on the car at the best price in the market.