Back in the days, it’s possible for you to drive a new car if it is owned by the company or when you fork out the allotment for your own house deposit. But right now, you can own a new car using car finance.
If you lease a vehicle using car finance, it means that you’re only paying for it during the time that you use it. You will have the option to take another lease or surrender the car after the lease term. But you can also own the car and seek assistance from a Finance company.
Getting to Know the Types of Car Financing
Once you have chosen car finance, you’ll be faced with several choices. The most popular type is the standard consumer loan. Your interest rate will be set accordingly together with your financial risk and current market situations. This is how this type of car finance usually works.
Loans are usually set at a fixed rate so it would be easier for you to do the budgeting. Using this type, you are given up to five years to settle the loan through monthly obligations.
The personal lease is also another type of car finance. By using this type, you make monthly obligations in the same way you would when renting a house.
The hire purchase car finance is one among the common type of car financing. Hire purchase is a more flexible version of the personal lease car financing option. This means you don’t need to pay for the entire car in the beginning. Instead, you lease it using car finance after which you pay what is known as the ‘balloon payment’ after the agreed car finance lease period. The payment deals would suit your cash flow and budget simply because this type of car finance helps make arrangement on it which in turn benefits businesses very much.
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