Whether you are buying a car from us or not , we can help you with your car finance needs.
What is car finance?
Car finance is a loan you borrow from a lender to buy a car. Whether you want to buy a brand new or a used car, there are various options which you can choose to spread out the cost of your desired vehicle.
Like any other form of borrowing, car finance comes with interests and fees which needed to be paid over a specified period.
There are various ways which you can finance your car:
1- Personal Loan (PL)
A car loan can be just an unsecured personal loan which you take to finance your car. This works well when the ownership of the car is essential for you.
As soon as the seller receives the money, the car is yours.
2- Hire purchase (HP)
Hire purchase is an agreement with the lender which lets you put a low deposit, usually around 10%, and pay the rest of the price of the car by monthly instalments over a certain period, usually between 12 to 60 months.
The rates are very competitive for brand new cars comparing to used cars. The average interest rate for HP options is currently between 4% to 9% depending on the credit status of the buyer. The lower your credit score, the higher the interest rate will be.
3- Personal contract purchase (PCP)
This type of finance is mainly offered for brand new cars.
This is basically paying a deposit and hiring the car for the period of the loan with an option to pay a final balloon payment (the depreciated value of the car at the end of the loan term) to own the car.
Alternatively, you may want to return the car and walk away.