Your Guide To The Benefits of Car Finance

Getting car finance is a great option for many people that are looking for a new car but don’t want to pay for it all upfront. You may have noticed that there are many different options available. However, there are subtle differences that make some options better than others, depending on your financial circumstances. Take car finance, for example; this is a type of loan that can help you to get the car you want. Plus, it gives you flexibility and low monthly payments. There are many benefits of car finance. 

This guide will outline what benefits car finance could offer you. And, how it could help you get the car you want at an affordable price.  

Flexibility

The best thing about car finance is the flexibility. The choice of how long you make payments and how much you pay is up to you. If there is a financing deal that doesn’t suit your financial circumstances, you don’t have to pay it.  

In addition, there are different finance products you could choose from. For example, if you might want to keep the vehicle at the end of your car loan agreement. You could opt for HP finance or a conditional sale. However, if you might want the option to swap vehicle at the end of your contract. You could go for a PCP finance deal instead. The option to part-exchange your vehicle at the end of your agreement may also be an attractive option for you. This would be possible on a PCP agreement if that’s the finance deal you go for. 

The flexibility of getting a car on finance means that you get more choice than if you buy a car outright with cash. You can also change your car more frequently than if you bought a car as well. Plus, you could get a better, newer car at a price you can afford. Or if a used car is a better idea, that is also something you could consider. The choices are up to you! 

Affordability Of Car Loans

  • You’ll be able to afford the car you want.  
  • Car finance allows you to select a model and features that you may not have been able to otherwise. 
  • Pay for them in installments over time. This can help you avoid going into debt or relying on loans from friends and family members. 
  • For example, you might opt for no deposit car finance. If you don’t have the option to make a large upfront payment, this option might suit you. 
  • You could also get poor credit card finance. If you have been rejected by lenders in the past, you might be able to get accepted. This is because lenders may view your circumstances differently. 

Freedom Of Car Finance

One of the biggest benefits of financing a car is that you can use it like any other car you might own. If you need to use it for work or for other commitments, having a car can offer you these freedoms.  

As well as this, some warranties and maintenance costs are offered by car finance brokers. This can make your payments streamlined to suit your payment plan. This gives you the freedom to decide how you look after your car. 

When choosing your next car, some lenders may be open to specs that you want including in your vehicle. Just contact them know before you sign your agreement, otherwise, you can’t modify your car during your agreement. 

Since we have many different car loan deals available, we could help find one that fits both your budget and lifestyle. Our helpful advisors will go over all the details with you. They will do their best to find the best deal that could be offered to you. 

Accessibility 

Car finance is an alternative to paying for a car in one go. This allows you to spread the cost of your vehicle over a period. This can help you manage your money more effectively and avoid having to make a large upfront payment. 

Lots of people are choosing to finance their cars over purchasing them outright. And lots of people require cars for their needs. Car loans offer lots of people with different financial circumstances the option to get a car at an affordable price. 

Depending on the car finance agreement you choose, you may not have to pay any additional fees. For example, if you choose a HP agreement or a conditional sale, you will own the car at the end of the term. Compared to PCP or PCH deals where you might have to make a ‘balloon payment’ at the end if you wish to own the car. 

Also, depending on your credit history and income, you may be able to get lower interest rates on your vehicle. However, this is not guaranteed. Getting a quote from us, it will tell you what rates you might be entitled to.  

This means that you could be accepted for a car finance loan, even if you have bad credit

Build Your Credit Score 

If you have less than perfect credit and get accepted for car financing, you could use the payments to build your credit score. This is because a car is a high-value asset that will impact your credit rating depending on whether you can make your monthly payments.  

This will prove to lenders that you could pay them back in the future, and this could improve your prospects of being accepted by more lenders in the future.  

If you want, you could boost your credit score sooner, to give you the best chance of getting accepted by lenders. Do this, by seeking financial advice from Credit Reference Agencies (CRAs), or other financial authorities.  

Your Security For Getting Car Finance

By choosing a car finance deal through a car finance broker, you will be getting a car from a position of strength. Our brokers can advise you on the best deals available to you and break them down, so you understand.  

Moreover, brokers will do most of the negotiations for you with the dealer. This means that if getting car finance makes you apprehensive, you won’t have to do most of the work. All you have to worry about is what car you want!  

It Saves You Time 

A car is a big purchase and if you’re not careful, it can leave you with a lot of debt. However, one of the benefits of car finance, you don’t have to worry about paying the whole amount at once!  

Plus, getting a new car could take a lot of time. You have to choose the car you want, go to the dealer, and negotiate yourself. However, with a car finance broker, they could save you lots of time. This is because brokers could do a lot of the work for you, meaning you could get a new car in a matter of days. 

Conclusion 

Financing a car can be a great option for those who want to drive without the burden of paying in full at once. It gives you flexibility as well as affordability, which is why many people choose this way of purchasing their vehicles. 

We hope this guide has outlined some of the many benefits of car finance. Should you wish to get a car loan, make sure to get it through a brokerage service such as here at Bright Motor Finance. That way, you can make sure you are getting the best deal and are protected from dodgy dealers. We only work with FCA-regulated dealers to ensure that you get a service that is unmatched.  

Want to find out more about car finance options that could be available to you? Get in touch with us today! 

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