Buying a new car is exciting. Whether you’re looking for a bolder, safer or more family-friendly motor, the perks are never-ending. But when it comes to paying for your new set of wheels, you want it to be affordable and not break the bank!
Opting for car finance just makes sense. It allows you to have more freedom and flexibility with your money. But more than that, it opens up your choices and gives you access to all the newest mod-cons on the market.
Are you ready to take the leap? Here’s why we think car finance should be your first option when buying a new car:
Low monthly payments
One of the most attractive parts of car finance is the low, affordable repayments. Whether you opt for hire purchase (HP), personal contract purchase (PCP), lease purchase or personal loan, you can keep tabs on your finances with ease.
Unlike having to find the cash upfront for a new car, where you are more likely to damage your savings, car finance frees up your hard-earned cash.
Most car loan deals range from three to five years. With fixed low monthly payments, your outgoing spending becomes negligible as a result.
Car finance can help boost your credit score
Making your payments on time and sticking to the terms and conditions of sale for your new vehicle will enhance your credit score.
We all know that getting approved for a car loan is far more straightforward if you already have a good or excellent credit score. But car finance is more accessible than you think.
Bad credit car finance is designed for people who have struggled to get accepted for finance due to their credit score. You might be self-employed, have a bankruptcy, CCJ, IVA or default on your account. But, these specialist lenders care more about getting you behind the wheel despite your personal circumstances.
They will look closely at what you can reasonably afford and if you have the potential to be “creditworthy.” Pay all your monthly payments on time, and you’ll quickly notice a difference in your credit rating.
The safest cars on the road
Whether you’re looking for a new or nearly new car, the chances are you will be investing in the latest safety features and technology. That means access to the highest-rated Euro NCAP vehicles - the ones that pass all the crash tests with flying colours and more.
For the latest models, you can expect most if not all of the following safety features to be included:
- Automatic emergency braking
- Intelligent speed assistance
- Advanced driver distraction warning systems
- Reversing detection systems/camera support
- Event data recorders
- Accurate tyre pressure monitoring
- Lane Departure and Blind Spot Warning
- Automatic Crash Alert System
- Collision detection warning
More choice
Car finance gives you more choice. You’re less confined to what you can afford on the spot, as the lender will take the initial financial hit. This gives you more options all around, such as colour, trim, engine size and more.
Moreover, you can get your hands on the latest models to hit the dealership floor.
Most finance deals such as hire purchase (HP) and personal contract purchase (PCP) also make switching your vehicle incredibly simple.
For example, if you have PCP, you simply contact your lender and ask for a finance settlement figure. Then, get your car valued and subtract the settlement figure from your car’s current valuation. If you get a positive figure, you can use this as equity towards your next vehicle.
EV grants and opportunities
The future of motoring is electric. With the industry ramping up its efforts to meet global demands for an electric vehicle (EV) dominated market by 2030, the UK government has several supportive grants available.
The significant one is the Plug-in Grant. A maximum of £1,500 is available for those wanting to leave their fuel-guzzler behind and embrace an EV. You can also combine this with your car finance deal to help chip away at your monthly payments even more.
On the gov.uk website, you will find all of the EV cars listed that the grant covers, such as the popular Nissan Leaf and Volkswagen e-up!
Extra perks
Servicing and maintenance can add hundreds if not thousands to your annual spending on a vehicle. But with most car loan deals, you’ll be covered.
Throw in a decent manufacturer’s warranty, and you’ll be laughing. Most new cars will have at least 3 years of cover, and some will even go up to 5 or 7 years.
But the fun doesn’t stop there. Many nearly new motors may still have their original warranty attached.
No worries about selling your car
The beauty of car finance is that it takes all the pressure off of you when your agreement ends. Depending on the type of finance package you choose, you’ll be able to either hand the car back, part exchange it for another one, walk away or keep it outright as your own.
Almost all dealerships will be happy to part exchange your current vehicle to cover some of the costs. So you’re entirely let off the hook and won’t have to find a way to sell your car privately.
More security
Unlike other types of finance, a car loan is typically an unsecured loan. Meaning you don’t have to use your home as collateral against the vehicle.
In the unlikely event that you don’t keep up with your payments, the lender may seize the vehicle, but they cannot take any of your belongings to cover the cost.
Remember the extra perks like car maintenance and warranty? This ensures you can stay behind your wheel for longer without worrying about covering repairs or hefty garage bills.
Buying a new car with finance is one of the best decisions you’ll ever make! With over 90% of Brits opting for a car loan, it's easy to see why this has become the most accessible and popular way to buy a new vehicle. Why not see how much you could save each month with car finance?