If you are in the market for a new vehicle, there are many finance options to choose from, including the traditional PCP and PCH finance agreements and the more modern subscription service or auto loans; even if your credit score isn't good, you may still find that there are some car finance poor credit options available to you in order to help you get a new car. Read on to find out more about what the best vehicle financing option for your next car is going to be.
Personal Contract Purchase
Personal Contract Purchases, also known as PCP loans, are still one of the most popular ways to get behind the wheel of a new vehicle. Depending on your financial situation and your ability to pay, an audi finance doncaster company (or a similar company for your desired car brand in your locality) will offer you a PCP contract with the manufacturer of your new vehicle.
After you have been approved for finance, you will pay a deposit for the vehicle; you will also agree to pay a monthly premium for a duration of 12 or 36 months. When the period comes to an end, you will be given a choice to pay a final sum and own the vehicle or exchange it.
Personal Contract Hire
If you don’t qualify for a PCP loan or you want more flexibility in your loan agreement, you might prefer a Personal Contract Hire vehicle. These contracts are rental agreements. Like the PCP loan, you pay a deposit at the start, but unlike PCP, you can’t buy at the end of the contract.
PCH contracts suit people who need a car on a shorter term lease, perhaps a year or so, or have no intention to buy a vehicle. Users can pay less for their monthly payments by renting the vehicle over a longer period. They are popular, and around 11% of car users have a PCH rental.
New Roads Auto Loans
If you need a loan for a car but you have poor credit, or you are in the process of recovering from bad credit, New Roads Auto Loans could be the answer. Whether you need a loan for a deposit or a subscription rental, you have a better chance of qualifying for a special auto loan.
If you have issues with credit following debt recovery or bankruptcy, visit New Roads Auto Loans for more information. This vehicle car loans company specializes in hassle-free loans and can offer pre-approval online in only sixty seconds. Car loans also help you to build credit.
Subscription Cars
Subscription cars are growing in popularity, especially in the last year, since car owners recognize the advantages of paying less each month for a car they don’t have to insure, pay road tax on, or service, and they can swap the car if they get bored or the season changes.
Subscription cars follow the same model as smartphones, you pay a monthly subscription fee, and you get a monthly mileage allowance; if you go over this monthly allowance, you pay an additional amount. This system lets you drive an SUV in winter and a convertible in summer.
Conditional Sale
A conditional sale is another popular finance option to buying a vehicle. In this model, you are loaned the sum of money needed for the vehicle - it can be a new or used car - and pay the finance company an agreed amount over a 12-60 month period with a fixed interest rate.