Are you searching for car finance in Salford? If so, Car Finance 4 U has several options to help you get credit for a new car.
What is car finance?
Car finance is available to help you spread the cost of buying a car. As opposed to paying the full amount upfront, you can pay monthly. There are several different ways to be under a finance agreement, such as a hire purchase agreement or a personal contract purchase. It is estimated that approximately eight in ten cars on the road are paid for through some form of finance, be it a hire agreement, a bank loan or credit.
How does car finance work?
Every form of car finance will have separate ways of working. However, generally speaking, finance means that a finance company will purchase the car on your behalf and you, the customer, will pay back the value of the car plus interest repayments. Usually the agreements are secured against the vehicle for the duration of a contract, which is generally around 3-4 years. During the course of the contract, you will not own the car, the finance company will. At the end of the agreement, once all the repayments have been made, you will then become the owner of the car- unless you have taken your car out on a rental agreement, in which case the car will be returned to the finance company.
It is also worth remembering that whilst your monthly repayments will be lower if you choose to pay over a longer term, you will end up paying a lot more interest overall.
Who is eligible to get car finance in Salford?
With most car finance options for Salford, not everyone will be able to get car finance. Often, people who have a bad credit history or have no credit history at all will be refused, as will people who have a low income or an unstable one (such as people on benefits or self-employed). But we at Car Finance 4 U believe everyone deserves a chance and we consider every application we receive, regardless of your previous credit history.
Finance packages offered by Car Finance 4u
Hire purchase agreements are deemed to be the simplest way to buy a car. Under this kind of agreement, there will be a deposit to pay and then you will pay off the rest of the cost in fixed monthly repayments. Until the final payment, the car will be owned by the finance company. At the end of the agreement, you have the option to pay an ownership transfer fee, meaning that the car is officially yours. Up until this point, you have no rights to sell the vehicle.
Would a hire purchase agreement be right for you? You should choose it if:
- Owning the car eventually is important to you.
- Your budget would suit fixed monthly repayments.
- Your disposable income could decrease in the near future (e.g. if you’re starting a family).
- You don’t mind not owning the car until all the debt is repaid.
Personal Contract Purchase (PCP)
Personal contract purchase agreements are very similar to hire purchase contracts, in the way that there is a deposit to pay followed by fixed monthly repayments. They differ because at the end of the term, you will have the choice of returning the car to the supplier, keeping it or trading it in for a new model. Returning the car does not cost anything, but if you choose to keep it, you will have to pay a final payment, which is known as the guaranteed future value. This payment will be agreed at the start of your contract. The amount that you will pay is entirely dependent on a number of factors such as the mileage that you anticipate to drive and the length of the loan itself.
Is a personal contract purchase agreement the right form of finance for you? You should consider it if:
- You like the idea of lower monthly repayments.
- You think it is important to have flexible options at the end of your agreement.
- You can confidently estimate how much mileage you will use.
Car finance jargon explained
APR (Annual Percentage Rate) this is designed to give you a realistic idea of the cost of your borrowing. For example, if the rate is 10% and you borrow £10,000, you will pay back £11,000.
Excess mileage- If you choose to buy a car on a personal contract agreement, you’ll be restricted to covering a certain amount of miles. This will also assist in predicting the future value of a car. If you go over this predicted mileage, you could be charged per mile (known as excess mileage), so it’s important not to underestimate your mileage.
Gap insurance- This finance product will cover the difference between what your insurer will pay if the car happens to be written off and what you originally paid for the car. You can choose to pay monthly or up front.
Guaranteed minimum future value- When you choose a personal contract purchase car, the dealer will provide you with a valuation of what it will be worth when your agreement comes to an end. This will mean that you are protected should your car suddenly decrease in value.
Zero percent or 0% APR– This means that what you borrow is what you pay back- so if you borrow £10,000, you will pay back £10,000.
Car Finance 4u, car finance for Salford has a range of options that will suit all needs and budgets.
About Car Finance 4u
Car Finance 4 U is a licensed credit broker based in Warrington, England with connections across Salford and the North West. The company was established back in 1996 and has a reputation for introducing customers to a number of different lenders based on your income and credit history. To make things simpler, Car Finance 4 U provides both the car and the finance.
If you wish to calculate how much car finance you could get, please use the finance calculator on this site or contact Salford’s best car finance provider, Car Finance 4 U.