Whether you're buying a brand-new car or a second hand one, car finance deals are an increasingly popular choice. This is because they provide a range of benefits that can make car ownership more affordable and less stressful.
The first key benefit is that when you take out a car finance deal, it spreads the cost over a fixed period of time, typically over two, three to five years. This means you will be paying lower monthly installments than if you paid for the car outright. That said, car finance offers have other advantages as well.
For starters, you can often tailor a car finance deal to fit your budget. You can decide on the amount of deposit you want to put down, the repayment term and the amount you can pay each month without overburdening your finances. You can also negotiate a lower interest rate or opt for a more flexible repayment plan. Additionally, you can also select optional extras, such as a Balloon Payment that allows you to reduce your instalment amounts.
Another key benefit of car finance deals is that it is often easier to secure them than a personal loan. This is because car finance lenders consider the car to be security for the loan. As a result, you don't have to submit to a credit check or provide the lender with other forms of collateral.
Car finance can also be a great way to save money on various taxes and surcharges associated with buying a car. This is because many lenders promote sole-trading as an alternative to full ownership when offering car finance deals. This allows you to purchase the car as a company or business entity, thus avoiding hefty taxes and other extra payments.
Ultimately, car finance deals offer a range of advantages that can often make car ownership more affordable and less stressful. From low interest rates and easier loan approvals to optional extras and tax savings, there are plenty of benefits to taking out a car finance deal. If you're considering a new car, then car finance might be the ideal choice for you.