What is car finance?

Mar 30, 2021 | The Hub | 0 comments

You might be looking for a car or you might be ready to buy, either way, we are sure you will have come across the term ‘car finance’. It is something that has grown in popularity over recent years but if you are unsure, take a read and we shall explain.

Car finance is where you purchase a car but pay back the money it is worth in instalments. You usually pay a deposit at the start of the agreement, and then you are given a payment plan over a number of months or years, with set amounts to pay each month. It is a way of spreading the cost of a car instead of having to pay for it in full.

There are different types of car finance, ones that have different options at the end, ones that end in owning the car, and even types of car finance for those who have struggled to get finance in the past. Car finance was created to make owning and driving a car more accessible to more people, and there are plenty of benefits…

First of all, it means you don’t have to save a large chunk of money to drive a car, you can put down a deposit and start driving immediately, so long as you commit to the monthly payments. This also means you don’t have money tied into a car so you can spend it elsewhere or even invest it.

Another benefit is that you can often afford a nicer or a newer car with car finance, as spreading the payments makes more cars accessible, so you will have your pick of the crop when you come to choose a car.

Car finance is really flexible, as there are so many lenders and so many different options to choose from, so you can build a deal that suits your budget and your lifestyle.

There are plenty of benefits when it comes to car finance. If you are interested and want to know more, come and speak to a member of the team or apply online.