With Rising Car Prices, is Car Finance the Best Option?

There’s no question that car prices have been seriously ‘on the up’ lately, with even used car prices hitting record highs. At a time when many motorists are unable to buy a car purely with the money they have lying in their bank account, funding a car purchase through a finance agreement has become a common, and appealing, solution.

Of course, car finance schemes also bring in plenty of profit for the motor trade; dealers, car brokers and car supermarkets of all kinds tend to offer a variety of finance plans to attract potential customers.

Taking this route is appealing, but is car finance really the wisest choice of funding your next car purchase? We thought we’d give a more thorough answer to this question.

Learn about dealer finance first

When looking into car finance, you’re most likely to look towards a reputable dealer first. Car Finance Genie offer fantastic car finance deals, in collaboration with a comprehensive network of trusted dealers, handpicked and chosen for their quality vehicles and great prices.

It’s fair to say that, almost all of the time, choosing a car dealer that offers reliable car finance is the wisest option: safe, efficient and without hidden costs.

When looking to a dealer, you’re most likely to be offered three different types of car finance:

Hire purchase – as a finance option, hire purchase is secured against the vehicle itself – and you won’t own your new motor until the final payment has cleared. This also means you can’t sell the car without your lender’s permission, but you can return it if you find yourself dissatisfied! A deposit might be required, but once you’ve repaid all of the instalments, the car will be yours – forever.

Personal contract purchase – with a PCP deal, you are likely to pay a deposit, followed by low monthly instalments over a predetermined pay period. Once this period ends, you can pay a lump sum to purchase your new car outright – or you can return the vehicle or exchange it for another, depending on the specific dealer. This varied choice is perfect for people who switch out their car on a regular basis, and have no problem sticking to outlined mileage limits (often a condition of such a finance option).

Personal leasing – personal leasing is much like the PCP option outlined above; essentially, you hire a car with low monthly payments. Unfortunately, there’s no option to purchase the car at the end of personal leasing – but this does mean you’re not tied down to one vehicle. Deposits, mileage limits and length of contract often vary, depending on the vehicle.

The general advantages of car finance

The benefits of car finance are plentiful, despite whatever drawbacks there may be. Overall, car finance is a viable option for many motorists – monthly payments are low, you can negotiate your leasing period, and many dealerships offer quotes free of charge.

Choose Car Finance Genie

At Car Finance Genie, their team make available a broad range of car finance deals for the eager enthusiast who may otherwise be unable to purchase the vehicle of their dreams, or who simply appreciates the convenience a finance deal can bring them on a backdrop of rising car prices.

Apply today for a no-obligation quote from us, and you may be surprised by the great value a car finance agreement with us could represent.

By: Charlie Clayton