WHICH TYPE OF CAR FINANCE IS RIGHT FOR YOU?

Car finances should be sought in accordance with the financial status and distinctive demand of each individual. There is a number of ways one can finance a car. The most popular types are personal contract purchase (PCP), hire purchase (HP) and personal contract hire (PCH) which is essentially a long term one.

It is always advisable to seek an online car finance specialist like https://www.thegeekcubes.com to find a lender who agrees upon your budget and also the other specifications.

Know if Hire purchase (HP) is right for you

Hire purchase facilitates you to own the car once the monthly payments are done. If you want the car all to yourself at the end of the agreement, HP is right for you. HP works on paying an initial deposit which is followed by fixed monthly payments until you have paid the outstanding amount. Once it is done, the car is all yours. All you need to keep in mind is that until your agreement is finished the vehicle belongs to the finance company. And also unlike other finance options, which usually charges when the pre-agreed mileage limit is exceeded, the finance company won’t care how many miles you have traveled when it comes to HP.

Know if personal contract purchase (PCP) is right for you

PCP could be a very comfortable option if a low monthly payment is your concern. It’s the cheapest way to finance a vehicle and there is always an availability of great deals on both used and new cars. The main advantage is that monthly payment is based on the car’s depreciation value and not on the total value of the car, which makes PCP the cheapest way to finance when compared to HP and other ways.

Know if personal contract hire (PCH) is right for you

PCH is the best way if you are looking for services and repairs to be included in the package. It prevents you from spending extra cash on unexpected repair bills and helps you with a budget and your overall plan of running costs. If you are a person who can’t settle for a single car all through your days and desire to try every now and then brand new car in the market, this scheme can well suit you. Another advantage is that the rent is fixed all through the contract but be warned, the car will be taken away if the monthly payment is made due.

Choose your plan wisely and ride safely.