Should I Buy a Used Car on Finance?
There are so many ways to buy a used car in this day and age and buying on finance is a popular option we offer at Caledonia Vehicle Solutions. To decide whether or not it is for you, you need to know exactly what it entails and figure out if it will suit your personal circumstances.
Firstly, here’s what you need to know about finance. If you can’t afford to pay outright for a used car, a car finance agreement will enable you to pay a certain amount of money each month and split the cost of the entire car over time. At Caledonia Vehicle Solutions, we offer two main types of finance agreement: personal contract purchase (PCP) and hire purchase (HP).
HP Finance
HP is a type of finance where you pay a deposit for the car, then continue to pay monthly until the end of the agreement. At this point, you will have paid for the entire car and it’s officially all yours! Until the end of the contract, you are just hiring the car.
PCP Finance
PCP finance is similar, but your monthly payments will be lower because you are not paying to become the owner of the car, you are basically covering the cost of its depreciation. You decide how long you want the car for and then give the car back when that period is up. Alternatively, you could pay a large sum to keep the car.
Benefits of Car Finance
Particularly when it comes to high-end used cars, paying outright can be extremely costly and could take years of saving. Many people decide to take car finance deals to pay for their car as this makes your payment far more manageable and eliminates the need to wait.
Considerations
Finance deals are excellent, as they allow you to expand your choices to include used cars you might not have been able to afford if you were paying with cash up front. However, a car finance agreement is a long-term commitment, typically lasting between one to five years and before getting into anything, it is important to do some math to ensure you will be able to comfortably afford the monthly repayments.
Here at Caledonia, our car finance advisors can help you pick the best option for you and make sure you are getting the best deal. We offer amazing finance deals when you purchase any of our used cars, so no matter your budget you can drive away in the car of your dreams.