There is nothing quite as alarming as your car giving up, and you not having the money available to buy a new one. If your car has decided to die and you are looking at your finance options, this guide will help you find the perfect finance option for you:
Hire purchase may be an excellent investment option for you if you do not want to physically own the car. You can hire a car for many years, paying a monthly fee. This means that you do not own the car outright at the end of your finance contract. You give it back to the dealership in exchange for a new one. One of the great benefits of going for a hire purchase option is that it makes monthly budgeting easy. Furthermore, once you have paid a deposit, you will get a substantial amount taken off your monthly payments. Remember, the higher the deposit, the lower your monthly fee. This is a great option for those that are savvy with their cash. You may want to consider buying the car afterwards, but many people like to swap the car for a brand new one and start the process again. This can be an attractive option for petrol heads who love the feel of a brand new car. Who cares if you don’t legally own it? You could be driving around in a swanky automobile.
Balloon Hire Purchase
Balloon hire purchase works in a similar way to hire purchase. There are a few small differences. At the end of your agreement, you are subject to paying a larger balloon fee. This is made at the end of the agreement, as opposed to paying a deposit at the beginning of the agreement. Much like your hire purchase deposit, your monthly fixed payments are reduced by paying the balloon fee. This is a great option for those that do not have an initial deposit to buy a car. This in turn allows you the option to save for the duration of your hire purchase agreement. Furthermore, you own the car at the end of the agreement as opposed to giving it back to the retailer. You can find out more about finance at Hunters Land Rover.
If you like the thought of owning your own vehicle, then a personal loan will assist you in purchasing a car outright. You can seek personal loans from your high street bank, or your motor dealer may have some loans available to you. Of course, when the car depreciates in value, you may not get the full sale costs back to you when you sell, in the future. However, the car is legally yours.
Advance Payment Plan
With this option, you purchase a car for a deposit. You then agree on your annual mileage and decide how the car will be used at the end of your agreement term. You may wish to keep the car, or return to your dealer. In some cases, people may choose to renew their contract thus enabling them to keep the car for long.