Car finance describes the various financial products and services that allow individuals to buy a vehicle by spreading the cost over a set period of time, usually in the form of monthly payments. Car finance includes three types of finance options: loans, leases, and hire purchase agreements.
Car loans are basically a form of financing whereby the lender provides the borrower with a lump sum of money to purchase a vehicle. In return, the borrower repays the loan plus interest over a fixed period of time.
Car leases allow the borrower to use a vehicle for a specified period of time in exchange for regular monthly payments. At the end of the lease term, the borrower typically has the option to purchase the vehicle or return it to the leasing company.
Finally, hire purchase agreements involve the borrower making regular payments over an agreed period of time, with ownership of the vehicle transferring to the borrower once all payments have been made.
All three options have their own benefits and disadvantages.
You can choose from either Hire Purchase (HP) or Personal Contract Purchase (PCP). The best type of finance depends on your personal circumstances.
In some circumstances, it can be. Provided payments are kept up with, getting finance can improve your credit score. What's more, you can start driving a new car much quicker than if you waited to save up the money.
Yes, it's possible. As a car finance Manchester service, we specialise in securing finance for people who have previously been refused in the past. Please speak to one of our team to find out more.
