quotes the day :Car finance explained

 

Car finance explained

There are lots of ways to finance a new car.

Although there are differences between them, most deals will ask you to make an initial deposit, then set monthly payments over the time period you agree. 

Whatever deal you choose, it’ll help you spread the cost of buying a car, although you’ll have to factor interest rates and fees into the total cost.

When you compare car finance with us, you’ll see all the options available to you – not just unsecured personal loans and secured car loans.

You’ll be able to compare loans against Personal Contract Purchase (PCP) and Personal Contract Hire (PCH) as well, to really help you find the right finance for your next car.

You need to know the difference between these products – you’ll own the car from the outset of the agreement with some types of finance, but with others you won’t until the end. And, in some cases, you will never actually own the vehicle.

With some deals you effectively only hire the car and will have to hand it back once the agreement ends, while with others you’ll need to make a larger final payment to take ownership.


Can I get car finance with a poor credit score?

If you’ve had credit problems in the past it might be a bit harder to get accepted for the most competitive deals, or you might have less finance options to choose from. But it’s not impossible.

Don’t make the mistake of assuming you’ll be rejected, or that your only option is to take out car finance through the car dealership – comparing will help you find the most competitive deals for you.

Some finance providers will allow you to make a ‘soft search’ application to find out if you’re likely to be accepted before you apply properly. That’ll help prevent your credit record from being adversely affected by too many unsuccessful applications.

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