Car Sales on Finance – What You Need to Know

Buying a used or new vehicle on finance gives you the freedom to purchase what you want and pay the vehicle off in monthly instalments. Once you have completed all the payments, the vehicle becomes yours.

This can be very beneficial when it comes to working with a limited budget. Not everyone has the financial freedom to purchase a vehicle for cash, especially when looking at younger models which comes with all the latest technology and safety features.

One of the benefits to looking at car sales on finance is that you can trade in your current vehicle as a part exchange. This enables you to get a value on your current vehicle, which is deducted from the asking price of the new vehicle. This gives you a lower amount which needs to be financed, helping to reduce the monthly instalments and helping you match your monthly budget on what you can afford.

When looking at car sales on finance you get to make regular monthly payments for the vehicle, rather than paying the amount in one large sum. This gives you wider freedom to find what you are looking for. Further if you do your budget before you start shopping around, you will have indication on what you can afford to pay each month, if you qualify, you can buy a vehicle based on the monthly payment amount after trade in, rather than the overall price, and you may be pleasantly surprised.

In addition to this, you have the flexibility to determine how long you want to make your payments for. This is normally twelve to sixty months. Of course taking it over a longer period will mean you pay more interest, but your monthly repayments will be considerably less than if you only take the finance for twelve months. Be realistic in your decision, based on your current working situation and what you feel you can afford in the long term.

The car dealer you are looking at that offers car sales on finance should give you the ability to apply for credit either online or over the phone. This does require a credit check, so it may be worthwhile obtaining a copy of your credit report to identify what your score is. Don’t worry not everyone has a perfect score, but obviously the better it is the higher your chances are of obtaining the credit you need.

If you have a tarnished credit score due to problems years ago, advise the car dealer before going ahead with the application. Some car sales on finance do take this into consideration and are willing to provide finance to those with a poor credit rating.

Another thing you will find when choosing a reputable company offering car sales on finance is that you can enjoy an instant decision. Five minutes online or a quick phone call can give you the answer you need. If approved, you could be driving away in your new vehicle within the hour.

Always ensure that you only select a reputable car dealership that has built up a good name in the industry. You want a company that is going to provide you with a complete service, helping you find the best vehicle to meet your need with a flexible finance package that also suits your budget.

Do your research to learn as much about the company as possible. Double check the vehicle comes with some form of warranty and identify who they use for the credit solutions.

Read through the paperwork in detail before signing, ensuring you know what to expect and what your monthly repayments are moving forward.

Leasing a Car Versus a PCP – The Key Differences

So, you need a car. Perhaps it’s to get to work, maybe it’s to do your work or simply get the kids to school on time in the morning. Whatever the reason, you just know that a car is what you need. Perfect, just head to a garage and… Wait. PCP or leasing? What’s the difference?

The answer, sadly, is quite a bit. Everything from the way your payments are structured to what happens to your car at the end of your agreement are different under a PCP than a leasing agreement.

What happens at the end of the agreement?

On a PCP

A PCP (Personal Contract Purchase) is, effectively, a form of hire purchase. What do we mean by that? Well, the ownership of the vehicle is with the finance company until all payments have been made. You’re still the registered keeper, but the vehicle is owned by the finance company.

With all your payments made, you’ve got a few options:

  • Want another car? Simply hand it back to the finance company, with no extra fees.

  • Want to keep the car? You can settle your agreement by paying the remaining value on the car, as laid out in your agreement.

  • Want a different car? Part exchange it. Depending on the value of the car, you could be able to cover the deposit on another car.

In a Lease

Leasing is simply hiring a car for a set period of time. So, at the end, your only option is to give the car back. Thankfully, leasing companies will often come and pick up your car on a pre-arranged date, and even drop a new one off for you, if you choose.

Do you pay a deposit?

On a PCP

Yes. Often you can pay as much or as little as you’d like, which affects how much you’ll pay on a month-to-month basis.

In a Lease

No. You will need to front up an ‘initial payment’ however. This is usually a 1,3, 6, or 9-month up-front payment. Following that, you’ll pay a monthly sum and, just like a PCP, the higher the initial payment you choose, the lower the monthly payments will be.

Can you change your mind?

On a PCP

PCP agreements are more flexible than their lease counterparts and often allow you to:

  • Change your car if, say, you need more seats for an upcoming addition to the family.

  • Need to increase the number of miles per year

Depending on your contract and situation these changes might incur a fee, or they could be free. When investigating a PCP always ensure that you read the terms of your contract closely. Do note however that if you wish to cancel your PCP you will typically have to pay up the entirety of your contract.

In a Lease

Leases offer far less flexibility if you want to make a change like swapping vehicles. Typically, your only option is to cancel your agreement and pay any remaining payments. However, some leasing companies just charge a fee for cancelling.

Are there any additional costs?

On a PCP

Insurance is still required on a PCP, so factor that in. You’ll also need to consider the fact that VAT is on top of your quoted PCP prices. Additionally, most PCP providers will offer maintenance packages, an additional monthly fee which will take care of any mechanical issues you might come up against.

In a Lease

Leases tend to be cheaper than PCP deals, largely because the finance company can claim VAT back on their vehicles. As such, no VAT is payable on your end either. You’ll still need to insure your car though and, just like a PCP, there’ll be an optional maintenance package if you want it.

Strategies to Avoid Car Repossession

Is Car Repossession a Reality for you?

Do your car loan payments keep you awake at night? Are you threatened by repossession of your car? If you are finding it difficult to manage your payments, you are not alone. There are thousands of Americans who are suffering from the same problem.

Why should you avoid Car Repossession?

You may think that there is no other option than to let the lender take away your car. But, it is important that you leave no stone unturned in avoiding car repossession because of the following reasons:

>> You will not have a car to drive after car repossession

>> It stays on your credit report for seven years

>> People with car repossession do not get car loans easily

>> You will have to pay the balance due on your loan after car repossession

>> Lenders may sue you for the costs associated with repossession of a vehicle.

What Strategies should be followed to avoid Car Repossession?

Car repossession is bad because it has catastrophic complications. So, it is essential that you avoid it with the help of the following strategies:

Make a Few Payments

No lender will repossess your car even when there is a chance of getting back a part of his investment. So, it is important that you make a few payments. It will help you in avoiding car repossession.

Do not worry if unemployment and lack of job opportunities have caused a terrible cash crunch. You can raise money by selling a few of your belongings such as jewellery, extra furniture and other appliances.

Apply for Deferment

Lenders want to do business and earn money. They lose money when they repossess a car because of the following reasons:

a. They have to undertake unnecessary paperwork

b. They have to bear the repossession costs

c. They are unable to generate enough money by selling the car at an auction

d. They still have to recover the balance due on the loan from you.

So, whenever you face the possibility of car repossession, work with your lender. There are chances that he may provide you a deferment of a month or two. The time period is enough to find a new job.

Opt for Loan Restructure

If you can manage a smaller monthly payment, you can ask the lender to restructure your loan. He will extend the loan term and reduce your monthly payment amount. You should not worry about the high amount of interest that you will pay after loan restructure because you can refinance the loan in future.

Sell the Car

If your family has more than one car, you sell your car and share the other car/s with your family members. It will help you avoid the bad credit ratings that accompany repossession.

Remember that selling your car is an option only when your car has equity in it. If you owe more to the lender than the car’s current value, you won’t be able to repay the lender.

Ask for Help

A friend in need is a friend indeed!

If you cannot sell your car or make smaller payments, ask a friend or a family member to help you make payments. If someone agrees to assume the responsibility, you can transfer the title to his name.

Being in a financial crunch can be distressing, but do not lose hope. By employing the strategies mentioned in this guide, you can work your way out of this terrible situation.

All You Need to Know About Car Detailing

Car detailing can be defined as the process of makeover of your old car. The process includes a variety of aspects including paint restoration, cleansing interiors, engine refurbishment, wheels care and car’s exterior detailing which transforms it to a new one. It turns into almost the same condition as the new one.

This process is usually performed when you plan to sell your old vehicle, as no one wants to buy a shabby looking car. It is advised by the experts to get the detailing done before putting your car on sale, as it not only imparts a perfect look and finish to your roadster to lure the buyers but also raises the resale cost.

There are many centers for automobile detailing where professionals perform all the necessary tasks to make your car look as beautiful and shiny as the new one. Before hitting these stations you need to know certain things about the services they’ll be offering, so that you know what exactly you’ll be paying for. Here is an article guiding you about the whole process with the points you got to remember whenever you hit any of the detaining stations.

Exterior Detailing

The exteriors are focused on this process to impart shiny, glossy and refreshed look. Various techniques are used in order to achieve the perfect look including washing, polishing and waxing. Special kinds of towels are used to dry the surface and not the usual one. Certified waxes and polishes are applied on the surface to regain the original glow and shine. Windows, headlamps, tail lights, bumpers (both rear and front) are given special treatment to produce the exact look of a new car. Scratch removal is also a part of this process where all kinds of scratches and stains from the car surface are treated by professionals with modern techniques.

Interior Detailing

This stage includes the complete cleaning of the cabin, which includes shampooing of seats, cleaning of foot mats and carpets. Special tools and brushes are used to clean stains on the seats. Dry cleaning of the cabin is preferred over the liquid cleaning.

Paint Protection

Paints are sensitive and are easily affected by the surrounding conditions. The main reason for dullness in the color is pollution and other gases present in the atmosphere. The color on the exterior fades away over time due to many reasons including irregularity in washing, use of cloth which isn’t a recommended one or the use of fake polishes and wax. To overcome all the conditions and generate the original shine, the car undergoes three simple steps, washing, cleansing and polishing.

Engine bay

The engine is the most important part of the vehicle and detailing it is even more important. It can add up the overall detailing cost but it is certainly recommended to get it done.