What To Do If Buying A Car Outright Just Isn’t Affordable

02 Apr

For many people buying a car outright is something that’s just not financially possible nowadays. That is unless you want to be driving around a piece of metal that has more wrong with it then right. We here at Applewood Vehicle Finance we have an affordable solution for you.

We have a number of different leasing and hiring contracts that we can offer to best suit your budget and lifestyle. Because you will be paying an amount each month rather than a lump sum up front, you may be able to drive around in a car that normally would be way out of your price range. We can make these dreams become a reality, helping you to find the best deal and car.

Personal Contract Purchase (PCP)

By entering into a PCP you benefit from paying smaller monthly payments towards the car with a lease between 2 years up to 5 years. You also have the option of owning the vehicle at the end of the lease for an agreed amount that would be considerably less than if you were to buy the car outright as the price will be predetermined. If you don’t want to pay the lump sum at the end and keep the car you are of course not required to and there will be no more hidden costs.

This option is great for if you’re unsure about wanting to keep the vehicle at the end of the contract period or not and enables you to drive a more expensive car than you would normally be able to afford while you decide.

Personal Contract Hire (PCH)

This option is a great choice for those who want the luxury of being able to drive a new car every couple of years without the worry of buying the car outright. It’s more flexible for you as you can choose the car, term and the mileage as well as deciding whether or not you want to include maintenance – this is also available from 2 years up to 5 year leases. At the end of the lease you have the option to purchase the vehicle; however market factors such as the mileage of the car will determine the price.

This option is perfect if you like the thought of driving a new car every couple of years that is normally out of your price range.

Hire Purchase

This method of financing is more known. Instead of having to pay the full amount for a car, you would just pay a deposit. The amount you pay determines the interest that will be charged, the higher the deposit the less interest will be charged. The interest and the remaining balance is then split into agreed payments and with the final instalment there is usually a miniscule “option to purchase fee” to pay, at which point you own the car.

This option is good for those of you who know what car you want, however you just can’t afford it all in one go.

So if you’re in need of a car and it’s not affordable for you to buy one outright then call us on 0800 783 3812 or contact us via our online form.

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