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Should You Bother Financing Your New Car?

Many people who want a new pair of wheels also have other things they need to buy. Maybe the washing machine has broken, the kids have an upcoming school trip abroad, you deserve a break yourself or you just don’t have the money. This makes it difficult to be able to afford a new car without making finances tight or unmanageable altogether.

Car financing overcomes these financial problems by enabling car buyers to buy or hire a car via monthly repayments rather than a full cash payment on the day you drive away. Interest rates on car financing can vary and there are different types of car financing models. Here you can learn about the different types of car financing and the great reasons to consider these options.

The Different Types of Car Financing

Car financing comes in different forms. The type of car financing will greatly depend on if you want to own the vehicle or hire it, among other factors. Three of the most popular car financing options include:

  • Personal contract hire: this is a fantastic option for those who do not want to buy a car but want a specific car for a fixed period agreed upon in advance. It enables the customer to get a car they want for a specific period – paying monthly fees – without the commitment of buying the car at the end of the contract.
  • Personal contract purchase: the opposite of the above is great for people who know they want a specific car and they want to buy it. They also pay monthly instalments, but this leads to them owning the car once they have paid the full amount over an agreed period. This will include a final larger payment in most situations.
  • Hire purchase: hire purchase financing is similar to personal contract purchase contracts, but you pay off the car’s value rather than the depreciation. It also enables you to own the car you always wanted without having to pay the full amount up front.

The Benefits of Financing Your Car?

Financing your car is a beneficial option for many new-car seekers. Here are some of the most enjoyed benefits of choosing car financing:

  • It helps you to avoid financial insecurity
  • It allows you to upgrade your car choice to a more expensive and better model
  • Sometimes you can use your old car as a deposit
  • Improves your credit rating when payments are adhered to
  • Allows you to maintain your current quality of life – just with a better vehicle!

Consider the JCB Group for Car Financing

Financing a vehicle appears to be worth it for lots of reasons. Here at the JCB Group, we offer many financing options that can help you get the car you’ve always dreamed of owning. Speak to our friendly and knowledgeable team to learn more.