Wolverhampton - Stourbridge - Redditch

The process of purchasing a vehicle can be a tricky one and there a lot of factors to consider when deciding which one you want to purchase. Once you have found the perfect vehicle, the next step is all about how you are going to pay for it. It's more than likely that you will want to get the best possible deal that you can and make you money go further.

It is here that you have to consider what the best option is and start to navigate the field of car finance. This may sound daunting but actually, it's not as bad as you may think. Financing cars is a very common practice so there will always be experts on hand to offer advice to ensure you get the most bang for your buck.

So what types of car finance are on offer to you?

There are two main types of finance include hire purchase (HP) and personal contract purchase (PCP). Splitting these into two make the process of deciding much easier for you.

• If you take the route of hire purchase, you simply pay a deposit followed by fixed payments. The vehicle is owned by the HP company up until the end of the finance agreement term or you exercise the option to purchase that may be included within your agreement. The benefits of this do mean you can make your money go further in acquiring a newer model or higher specification that your current car. The upfront investment is lower on the vehicle and with fixed monthly payment instalments, it means that your payments won't increase over the time period of your agreement. Unlike a lease, there is also no VAT to pay on your monthly instalments.

• Personal Contract purchase is slightly different to HP. Monthly payments tend to be over a longer contract period and are much lower. This is because you are paying the difference between what it is worth at the start of the contract and what it will be worth at the end of the contract. So, if the car is worth £10,000 now and it will likely be worth £5,000 at the end of a 24-month contract, then your payments would be around £208 per month as an example. At the end of the contract, you have a few options available to you going forward. You can:

1. Buy the car by paying a final payment
2. Hand the car back to the finance company
3. Part exchange for a new car.


Both of these finance options have advantages and disadvantages depending on how you want to purchase your car. Once you’ve done a little research, get in touch with an advisor as they will be placed to walk you through the process. Their knowledge and expertise ensure that they are able to advise you on the latest finance options and offers. Also, it is more than likely they will make you a cuppa with some biscuits and help you get your hands on your dream car.

The most important thing when navigating car finance is that it doesn’t need to be a scary experience. Even if you are not sure you can qualify for finance in order to get your dream car, there are options available to you and our team can take you through it.

If you’re still deciding what your dream car is though, why not have a look through our latest offers and see how we can help you get your dream car.


Published: 06 Nov 2018