Are you searching for car finance for the Wirral? Car Finance 4 U can help you get credit for your latest vehicle.
How does car finance pay for a car?
Car finance can help you spread the cost of purchasing a new car. Rather than paying the full amount upfront, customers can pay monthly. There are different methods such as hire purchase, conditional sale, personal contract purchase and lease purchase. It is estimated that around eight in ten cars which are purchased privately (i.e. not company cars) are acquired through some form of finance, be it through a loan or credit.
How does it work?
Each form of car finance works in different ways, but generally the finance company will purchase the car on your behalf and you will pay back the value of the car, plus interest repayments. Usually, agreements are secured against the vehicle for the duration of the contract which is around 3-4 years. During this time, the finance company owns the car and not the customer. But at the end of the agreement, once all repayments have been made, you will become the owner of the car, unless your agreement was on a rental basis, in which case the car will be returned to the finance company.
It is worthwhile to remember that whilst your monthly repayments will be lower if you pay over a longer term, you will end up paying much more interest overall.
Am I eligible if I have a bad credit rating?
Those who have a bad credit history or no history of credit at all will be often refused for car financing, as will people on a low or unstable income. But when you apply for finance with us, we consider every application we receive. Even if your credit rating has been affected by mortgage arrears, CCJs or missed payments, we may be able to tailor a payment plan to your needs.
Finance packages offered by Car Finance 4 U
Hire purchase finance is the simplest way to buy a car. Under this type of agreement, there is a deposit to pay and then you pay the rest off in monthly repayments. The car will be owned by the finance company until the final payment, and any ‘option to purchase’ ownership transfer fee has been made. Until this point, the person making the repayments has no right to sell their vehicle.
Is a hire purchase agreement right for you? You should choose it if:
- Eventually owning the car is important to you.
- Your budget suits monthly repayments.
- Your disposable income is likely to decrease over the contract term (for example if you are starting a family)
- You don’t mind not owning the car until the debt is fully repaid.
Personal contract purchase
Personal contract purchases are similar to hire purchases, in that there is a deposit to pay and then fixed monthly repayments. It differs at the end of the term, where you will have the choice of returning the car to the supplier, keeping it or trading it in for a new one. Returning the car won’t cost you anything, but keeping it will mean that you have to pay a final payment – the guaranteed future value- which is agreed at the start of your contract. The amount depends on a number of factors such as the anticipated mileage and the length of the loan.
You should choose a personal contract purchase if:
- You want to have lower monthly repayments
- You like to have flexible options at the end of your agreement
- You can confidently estimate your mileage
Car finance terms explained
APR (Annual Percentage Rate) this is designed to give you a realistic idea of the total cost of your borrowing.
Excess mileage– When buying a car on a personal contract purchase agreement, you will be restricted to covering a certain mileage, which will assist in predicting the future value of a car. If you go over, you could have to pay per mile, so it’s important to look into this when you sign your agreement.
Gap insurance– This is a finance product which will cover the difference between what your insurer will pay if the car is written off and what you originally paid for the car. You can pay monthly or up front.
Guaranteed minimum future value- When you get a personal contract purchase car, the dealer will give you a valuation of what it will be worth at the end of the agreement. This will mean that you are protected should it suddenly decrease in value.
Zero percent or 0% APR- This simply means that what you borrow is what you will pay back. For example, if you lend £10,000, you will pay £10,000 back.
Car finance in Wirral has options to suit everyone.
About Car Finance 4 U
Car Finance 4 U is a licensed credit broker, based in Warrington in the North West. The company was established back in 1996 and has gained a reputation for finding the right package for its customers. Car Finance 4 U can introduce you to a number of different finance providers based on your income and credit history. They will search their panel of lenders to find the most competitive rates available. To make things simple, Car Finance 4u supplies both the car and the finance package. Deposits start from as little as £50 and repayments are fixed. The interest rates depend upon your personal circumstances and the deposit that you put down. All of the cars supplied by the company are checked with a 136 point inspection, ensuring that none of the well documented car finance ‘tricks’ that may happen with other dealerships happen to you. 95% of customers who get a finance deal through Car Finance 4u return for their next package.
If you wish to calculate how much car finance you could get, please use the finance calculator on this site or contact Car Finance for the Wirral.