As oil and petrol prices rise along with car prices, the auto industry is making car finance and car leasing the most obvious option for consumers wishing to move up in the motoring world. Why is this and how can everyone benefit?
With class leading manufacturers setting premium prices that seemingly increase with each new version, the last few years have seen working class hero car manufacturers such as Ford, Fiat and Renault look to keep up by producing high-style cars to compete with class leaders, both in terms of quality, design, and price. To put this into perspective, when the Ford Ka was launched in 1996 it cost circa £6k but now on the road it is closer to £10k.
This means that outright car purchasing may be a thing of the past, with car finance, car leasing, PCH (Personal Contract Hire) and PCP (Personal Contract Purchase) deals all becoming more popular amongst new car customers. The only decision you have to make is how long you wish to keep the car, and whether you prefer to switch your car every few years, or have complete ownership.
The transition in popularity from outright purchasing to car finance was slowed by the Government ‘Scrappage’ scheme, with customers able to get that new car outright due to the generic £2,000 market value put on old cars. This scheme is over now however, and people are again looking for the most economical way of getting behind the wheel of their brand new, showroom-fresh car. Increasingly, people are recognising that car PCP and Personal Contract Hire options are the most convenient and affordable way to do this.
Getting a PCP will get you behind the wheel of the car you desire, to your spec, at an agreed price. You will not need to get a high interest unsecured loan from the bank to buy the car outright, and therefore total cost is lower. You only have to deal with the monthly payments, and you can have the option of purchasing the car at the end of your car leasing period.
This means you can ignore the fluctuating market, depreciating costs and the large down payment – typically, when you get a car on finance, you will only have to provide three months’ payment up front; significantly less than the full deposit on most new cars.
Moreover, when looking at cars on finance you do not have to take into account the manufacturers’ varying ways of financing your car. Every manufacturer has their own car finance deal, which they would rather you use than an outright purchase as, of course, they know the car is worth more if paid for on car finance.
Working out which manufacturer or dealer is actually offering you the best deal can often be more time-consuming than actually deciding which car you want to buy. With Finance A car, you don’t have to worry about navigating these confusing waters, as we find you the right cars on finance, at the best rates – leaving you to focus on choosing your dream car.