Why Choose Car Finance? | Advantage of Car Finance in UK
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Why Choose Car Finance

Why Choose Car Finance
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Why Choose Car Finance

Frankly speaking, when it comes to owing a car. There are few options in regards to the funding. Some will prefer leasing while some will go for cash purchase and lastly hire purchase (car finance). The reason for the choice depends on the individuals, their financial status and personality. In this piece, we will discuss what car finance is, the upsides and downsides, and why you choose car finance over other alternatives.

What is car finance?

Car finance is means through which an individual acquires a car through an agreement without having to pay the whole price at once. There are many products you can sign up under car finance, depends on your choice.

  • Hire purchase
  • Contract purchase (or personal contract purchase)
  • Personal Contract Hire (PCH)

A hire purchase (car finance) is presumably the most widely recognised finance agreement and the one that you are likely most comfortable with. You pay a specific sum every month over a set timeframe, and afterwards, when that time is up, you claim the car, and you don’t have anything more to pay.

A personal contract purchase or contract purchase is marginally unique. You pay a specific sum every month, and after that toward the end of the agreement, you have three choices;

  • Return the car back with nothing else to pay (subject to mileage and condition charges)
  • Part-trade the car
  • Purchase the car for a pre-concurred sum

Obviously, with a finance agreement, it’s the last one you need to be taking a gander at. At the beginning of your agreement, you will be given a Minimum Guaranteed Future Value. This is how much the car will be worth toward the end of your agreement. This depends upon various things such as the model and any extra additional items. When you pay this, the car is then all yours, and you don’t have anything more to pay.

The last alternative is a personal loan. This is the place you need to visit the bank, get a loan and use it to pay for your car. You will then need to pay back the loan the way you would pay any other loan. So those are the three car finance choices that are accessible to you.

Advantages Of Car Finance (Hire Purchase)

  • You own the car eventually

This is practically the fundamental reason individuals pick car finance rather than a lease agreement. There are numerous that like the prospect of owning their car toward the end and thus, renting simply isn’t for them.

  • Monthly instalments make it less demanding to spending plan

Not everybody needs to make one gigantic instalment for a car, which is the reason a car finance agreement is so engaging. Regularly scheduled instalments make for simple budgeting and imply that you won’t chunk out a bulk amount of money at a time.

  • Car finance plan is flexible

If you need bigger regularly scheduled instalments, then you can put down a small amount of deposit. On the other hand, in the event that you need smaller regularly scheduled instalments then you can have a bigger deposit as well as pick an inflatable instalment toward the end. Car finance is exceptionally adaptable.

  • Because you are paying month to month, you can drive a more pleasant car

If you needed to, you could settle on a more pleasant car as you will be paying it back extra time rather than upfront.

Disadvantages Of Car Finance

There are few demerits of hire purchase. They are:

  • You are conscious of depreciation; in which it won’t be your headache if you go for lease.
  • Since you will be the owner eventually, you may have to resell. Which means you have to worry about how to resell.
  • It can be more expensive than leasing

Why choose car finance?

Finally, individuals choose a car finance option since it is an exceptionally advantageous means of owning a car. You don’t have to pay an intemperate measure of cash in advance, and you can go without much of a stretch budget for the regularly scheduled instalments. If you would not prefer to transact with cash ( i.e. cash purchase)  and you would not want to go for lease, at that point hire purchase is ideal for you.

Ideally, this has cleared a couple of things up about car finance and given you some thought of the sorts of car financing product you will need to be taking a look at. You will agree with me that out of all the options you have, car finance is your best option.

You can call 0330 445 5505 and talk to one of our friendly members of staff who will help you with any queries.

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U Car FInance
U Car Finance is one of the leading UK Car Finance Brokers, we are dedicated to giving our customers the best service as possible. We accept people who have been refused elsewhere, people with good credit, bad credit and people with no credit history at all.

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U Car Finance
208 Victoria Street (Ground Floor)
Oldham, OL9 0DA
United Kingdom

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Mon-Fri: 9.00 am - 7.00 pm
Saturday: 9.00 am - 5.00 pm
Sunday: Closed

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Phone : 0330 223 4384
Email : info@ucarfinance.co.uk

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