If you have a family car that has seen better days, or you have a growing family and need more space, then you may have looked into buying a new car… only to find that the upfront cost of doing so would be well beyond your budget.
However, there might be ways in which you can spread the costs of the car and still get to drive it away. Here, then, is why car finance should be a consideration for you if you would like to get behind the wheel of a new family car.
Starting or re-establishing a credit history
If you have never used credit to buy things before, or you have a previously bad credit history, then you need to start making some positive moves to get the credit reference agencies to recommend you for loans and other credit. There are some companies that offer fantastic car finance options, even with bad credit, so that you can get yourself back on track.
Taking out a loan – and, crucially, actually keeping up with your repayments – can help you to build or rebuild your credit score, if it isn’t looking massively favourable at the moment. That factor alone could be a reason for you to consider car finance when you are next on the lookout for a family car.
Buying a new car
If you have decided to buy a new car, then you may not have enough money saved up to just purchase your desired vehicle upfront. You could save up that money, of course, but this will likely take some time, and your situation might necessitate the use of a car sooner than that.
Car finance will enable you to spread the payments over a period of time – for example, 24 to 84 months – and this will include interest on the loan. The amount of interest you pay usually depends on your credit score and the loan company providing the money.
Transaction safety
If you were to pay for a car in cash, you could be open to exploitation, especially if the company selling you the car is not trustworthy. You may pay the money and never see your car, or you might end up with a car that doesn’t live up to the standard you expected.
Although the process of obtaining credit can be time consuming, it does offer you a record of the purchase that you can use as evidence if something goes wrong. It is important to ensure you have read the terms and conditions to make sure you are not being misled.
Favourable interest rates
When looking for car finance, it is vital that you shop around to find the best deals. These usually involve getting the best interest rate you can, and the best monthly payments for your budget. Don’t try to overstretch your budget, or you will find it causes problems later on. You should also factor in the cost of running the new car, as this will eat into your daily budget.
Conclusion
Buying a new car is an exciting time, but it is also a big financial commitment, so you should be sure to check all the options before deciding on which type of finance you want to choose. Remember to balance all your budget needs when choosing to take out a loan.
Would you like to discover what could be possible if car finance seems like it would be the right option for you? If so, please don’t hesitate to ask for a free no-obligation quote through Car Finance Genie today.
