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Finding Car Finance Options

Finding car finance can vary depending on your situation. There are a few options that determine what type of financial aid you will need to purchase a car. Options for financing your new used vehicle include a car loan, Hire Purchase, 0 percent finance, leasing, and personal contract plan. After you have completed some research into what finance options are available to you it will be easier for you to find the right option. It may be obvious right away, or it may take a little time.

Finding car finance can vary depending on your situation.  There are a few options that determine what type of financial aid you will need to purchase a car.  Options for financing your new used vehicle include a car loan, Hire Purchase, 0 percent finance, leasing, and personal contract plan.  After you have completed some research into what finance options are available to you it will be easier for you to find the right option.  It may be obvious right away, or it may take a little time.


Hire purchase is your typical car loan, provided by the dealership. The amount of interest you are charged is dependent on your financial situation.  The company examines your personal information, income to debt ratio, and your credit report.  From this information they gather they will determine the risk you pose to repaying the loan.  The lower your risk to the lender the better interest rate will be awarded.


Hire purchase car loans work on a repayment schedule with a down payment.  Car finance companies will require a percentage down payment on the initial cost of the car.  The rest of the purchase price will be included in the car loan with monthly payments required.   With this car finance option, you do not own the vehicle until the loan has been paid off.  You might consider finding car finance options where you own the car right away if that is of interest to you.


Zero percent finance options are for individuals who can afford a large deposit.  The deposit can be up to a third of the car purchase price.  The rest of the purchase price is then put into a loan with monthly payments and interest.  This option will only be available on selected cars from some manufacturers, so you may not get the vehicle you want.


Leasing as a car finance option does not allow you to purchase the vehicle.  Instead you pay on a monthly basis to rent the vehicle for a certain period of time.  The amount of your payments will be based on the length you wish to hold onto the car and the stated mileage you expect to obtain.  You are unable to make changes to the vehicle, and insurance could be expensive.


With a personal contract plan (PCP) you put a deposit on the vehicle, make monthly payments, and have a lump sum to pay at the end of the contract – or you can give the vehicle back.


Car loan /car finance can also often be arranged from a car finance broker. This can often give you access to a wide range of deals, and by going online, you may sometimes get special internet discounts.


These are some of the car finance options available to you.  Investigate all your options to determine what may be right for you.

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