Trying to find the money for a new car can be extremely difficult. Whether you are saving up for your first car or you are on the hunt for a replacement, even a good quality second-hand option is still a big ticket item. Therefore, car financing schemes can be an excellent way to help us afford the perfect car. In particular, no deposit car deals allow you to secure your next vehicle with no payment up front. Here is everything you need to know about these schemes.
If you need a car but can’t afford to pay the full price for one at point of purchase, then finding the right car finance deals can is a must. In 2018, more than 2.4 million cars were purchased through finance, which was an increase of 2% from the previous.
There are two key types of finance, the first of which is hire purchase. For some, hire purchase is not always ideal as it requires a deposit which is usually worth about 10% of a car’s value. Therefore, if you are trying to buy a car worth £15,000, you will need to come up with a deposit of £1,500. Depending on your circumstances, this simply might not be possible. Furthermore, the car is not yours until everything is fully paid off.
For many, the better option is what is known as Personal Contract Hire . It’s is best to think about these deals as like a mini mortgage; you are being given the funds to buy a car and you will make payments over time with interest until it is paid off, and thus you own it from the outset.
If you need to buy a car but cannot afford a deposit for hire purchase then you may want to look into no deposit car finance . These personal contract purchases can be a brilliant way to pick up a brand-new car with no deposit if you can find a deal which works for you.
One of the biggest benefits of zero deposit car finance is that the monthly payments tend to be a lot lower than with hire purchase. This is great as it means you not only don’t have to put forward a lump sum at the beginning, but you also get lower payments overall. PCP schemes also offer you the opportunity to keep the car once the contract has come to an end or you might be able to swap out for a new car and a new contract.
No deposit cars might so far seem like the perfect solution but there are some things you need to watch out for. You should always check the small print in any sort of finance deal just to make sure that you are getting the deal you want. You also need to watch out for annual mileage restrictions you might have on the car or a restriction on how many days you can take it out of the country for.
However, if you find a good deal then you are likely to have no issues at all with and will be behind the wheel of your perfect car before you know it. No deposit finance might be just the solution you’ve been looking for so take a look at what deals are available through Car Finance Giant today.