Loans New Cars For Old

Loans - New Cars For Old
Thinking of​ buying a​ new car? Unless you’re paying cash,​ presumably you’re looking for the​ best way to​ finance the​ car of​ your choice.
For people who choose to​ buy a​ new car every two or​ three years,​ personal contract purchase,​ or​ PCP,​ is​ gaining in​ popularity .​
Your car dealer or​ the​ manufacturer effectively lends you​ the​ balance of​ the​ car,​ after you’ve paid a​ deposit of​ 20 to​ 25 per cent .​
a​ fixed trade in​ price is​ promised at​ the​ end of​ the​ deal .​
An annual mileage limit will be agreed and as​ long as​ this isn’t exceeded you​ will be offered a​ choice of​ options when the​ contract ends.
The choices will be
1 .​
To return the​ car and change to​ a​ new one.
2 .​
To trade it​ in​ at​ its second hand value – this may be more than the​ guaranteed figure,​ which makes it​ well worth doing.
3 .​
To keep the​ car,​ making a​ final payment of​ the​ outstanding balance.
Many people simply replace their car every couple of​ years,​ using the​ first option and keeping to​ the​ same dealer or​ manufacturer.
An alternative to​ personal contract purchasing is​ a​ simple car lease plan .​
An initial deposit is​ paid,​ which works out at​ three times the​ monthly lease payment .​
The lease payment is​ then made for 24 or​ 36 months,​ depending on​ the​ contract .​
At the​ end of​ the​ time you​ simply return the​ car and walk away .​
There are no obligations and you’re free to​ go ahead and choose your next vehicle without the​ complications of​ selling a​ second hand one.
To make a​ comparison on​ costs using the​ two methods shown above,​ if​ you​ take a​ vehicle costing £14,​995,​ bought through a​ personal contract purchase plan from a​ dealer,​ on​ a​ 3 year plan,​ you​ would pay a​ deposit of​ £1,​548 .​
There would then be a​ repayment period of​ 36 months @ £309 per month .​
The deal would guarantee you​ £3,​861 towards a​ new car if​ you​ were staying with the​ same dealership .​
Alternatively you​ could purchase the​ car outright for this sum and sell or​ use it​ in​ part exchange it​ towards your new car.
If you​ take the​ same vehicle on​ the​ second (lease) plan,​ you​ would make an​ initial payment of​ £969 and the​ monthly payment would be £323.
The other choices to​ consider for vehicle finance are personal loans or​ hire purchase .​
With hire purchase the​ loan is​ secured on​ the​ vehicle .​
Because of​ this,​ if​ you​ get behind on​ your repayments,​ the​ vehicle can be repossessed by the​ lender .​
Obviously,​ having completed the​ payments on​ the​ car,​ at​ the​ end of​ the​ period,​ the​ vehicle is​ yours,​ without any ties,​ limitations on​ mileage etc.,​
Offers of​ low or​ even no-cost credit can be found .​
Unfortunately they’re often unavailable on​ the​ model of​ your choice .​
In common with many other manufacturers,​ Vauxhall have some excellent offers with several models currently being offered at​ 0% interest over four years .​
For models not in​ the​ 0% range,​ for example the​ Astra Life 1.6 16v,​ the​ offer is​ considerably higher and in​ fact doubles the​ interest rate which most people pay via GMAC,​ the​ company that offers loans for customers buying directly from Vauxhall.
Of course,​ you​ don’t have to​ go along with the​ manufacturers deals and can work out your own comparisons by comparing the​ cost of​ personal loans .​
Log on​ to​ the​ internet and find a​ broker to​ check out the​ various loans available.
In general most car manufacturers will be able to​ offer some good deals when it​ comes to​ finance and it’s worth finding out what’s on​ offer for the​ car of​ you​ choice .​
It’s always a​ good idea to​ check what the​ same vehicle would cost using a​ personal loan and weighing up the​ final price paid is​ always worthwhile.
So,​ whatever your choice,​ personal loan,​ hire purchase,​ personal contract purchase or​ a​ simple lease plan,​ there are plenty of​ ways to​ finance your new car .​
Do your sums right and there are big savings to​ be made.

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