Leasing or buying a car on finance is the perfect option if you want to drive the vehicle you want while spreading the cost. By paying fixed monthly repayments over a course of years or months, car finance allows you to get behind the wheel of a car in an affordable way. Before agreeing to a car finance contract, you must ensure that you have a suitable income to cover the monthly repayments, but there are several other benefits that you can enjoy from this method of securing a car.
- You Know What You Are Paying
With a car finance agreement, your payments are fixed over a period that suits you. This means that you always know how much you are paying each month and when you will be paying it. There are usually no surprise costs or fees as all information is detailed in the agreement, and some finance packages also include maintenance costs, so you can take to the road with ease.
- You Can Get Car Finance With Bad Credit
There are many lenders that offer car finance for bad credit, so if you have less than excellent credit, there are still options to suit you. Some lenders base their decision on affordability, rather than reviewing your whole history. This means they will focus on your monthly income, your essential outgoings, and any other credit that you have. If this option sounds like it would suit your requirements, this is something that you should ask about during your initial inquiry.
- You Can Build Your Credit Score
If you have a bad credit score, purchasing a car with a finance option can help you to improve your credit rating. By keeping up your monthly payments, you are proving to future lenders that you can pay your loan back, especially if you complete the full finance term. This will show as a closed case with full repayment, which is very positive for future credit applications.
- You Can Part-Exchange Your Current Car
In many car dealership finance agreements, you may be able to part-exchange your current car, no matter the age or model. This means that you won’t have to worry about the hassle that comes along with selling the car privately or scrapping it, and you can reduce the overall cost of the new car.
- More Security
It is possible to purchase a car outright with a personal loan or savings, but this means that you are entirely responsible for the vehicle and any future costs. Whereas if you buy a car through finance, you often have more security. For example, some finance companies offer additional support such as adding a warranty to your agreement, or combining servicing, MOTs and tyres in your agreement.
- More Flexibility
If you compare purchasing a car through finance or cash, you will find much more flexibility with the finance option. This is because, depending on the type of finance you choose, you can have affordable payments, the option to hand the car back to the lender, upgrade it for another or keep it after the finance has been repaid.
We hope that this list has given you an insight into whether car finance is right for you, however, we still recommend browsing available lenders and finance options to find a solution that works for your needs.
