When it comes time to get a car, this is a big step in anyone’s life. You need to have a careful think about the best options open to you. This is an important decision to make and one you shouldn’t take lightly. Making the wrong choice at this stage could have disastrous consequences in the long term. If you’re a little unsure how to proceed consult a friend or family member who owns a car and see what they did.
There will be two options in general that you’ll have when it comes to getting a car. The first will be to buy one outright. And the other will be to get one on finance. There are advantages to either option; it’ll be a matter of personal circumstances.
- Small Monthly Payments
One of the great things about getting a car on finance is you can make smaller monthly payments. This means you’re not parting with a large sum of money straight away. It might be more financially viable for your circumstances. You can set an agreed monthly payment plan over several years. This breaks up the expense of buying a car and turns it into an affordable repayment system. As a result, this option is more accessible as it allows people to own a car who wouldn’t be able to afford to buy one outright.
- Own the Car at the End
Financing is like leasing a car. You make monthly payments for a set period. The difference is that on finance once you’ve made all the payments you then own the car. Leasing is more like renting the vehicle. Finance is an easy and effective ways of becoming a car owner. Think of the feeling when you make your last payment, and you know you finally own your own car.
- Use Someone Else’s Money
One of the biggest advantages of getting a car on finance is that you’re using someone else’s money. You’re negotiating a loan agreement that you then pay back in monthly installments. Because you’re using somebody else’s cash this frees up your money to use for important matters. It can be daunting spending a lot of money on something and can make finances tight.
- Can Get a Better Model of Car
Because of the nature of financing you might find you’re able to get a much better car than you’d be able to afford. If you have a good credit rating, you’ll find that the amount you’re able to secure from financing will be pretty high. This will allow you to get a better quality and make of car. This might be the best way to try to get your dream car at an affordable rate.
- Dealer Can Arrange Deal For You
The most convenient part of financing is that the dealer will arrange everything for you. And they might even be able to sort out discounts to help you out a little. The two main types of financing you’re looking at will be Hire Purchase and Personal Finance Purchase. If you visit rrg-group.com, you’ll be able to find information about both of these options. And you can use these for both new and used cars.
- One Off Payment
The best bit about buying a car is that you only have to make a one off payment. Once you’ve made the payment that’s it. The transaction is over. You don’t have to worry about planning for monthly payments to come out of your bank. This can be a problem as some months are more unpredictable than others. The last thing you want is a payment default. By buying a car, you cut out this problem with one easy, efficient payment up front.
- Own the Car Immediately
As a result of this it means that through buying the car you then own the car straight away. There’s no payment commitments stretched over five years. There’s no jumping through hoops and having to be careful of what you can and can’t do. Once you’ve bought the car that’s it. You own it straight away. It’s yours to do with what you will. Think about that. You make one payment, and you own a car. This is a major advantage of buying.
- Sell Right Away if You Want
One of the major bonuses about buying a car is the versatility it offers you. Once you’ve bought the car, you can do whatever you want with it. If you want to sell it straight away, you can do this with little to no problems. If you have the car on finance selling before you’ve completed payments can be a tricky process. And it will require the involvement of the creditors. It can be a trying and stressful process. If you’ve bought the car and want to sell again immediately, then it’s easy.
- No Limit on Mileage or Wear
When you buy a car, you don’t have any concerns about the mileage you might rack up or the condition of your car. Sure, you’ll want to keep the car as roadworthy and well maintained as possible. But on financing there are often limitations put in place for the condition you have to keep the car in. As well as the number of miles you’re permitted to drive per year. If you don’t stick to these, you may end up paying a lot extra on top.
- Customise Car
Once you’ve bought the car, there’ll be no limit to what you’re able to do to it. You can change the colour and design if you want. You can customise your car. If you want to rip parts out and replace them with new ones, you can do no problem. If you’re financing, you can’t do any of this until you reach the end of the payments and become the owner. This might be a long time, and it can be frustrating not being able to do things you might want to do to the car.
Overall when thinking about the smartest option you’ll need to think about all these factors. If you can afford to buy a car, then this would be the logical choice. But cars are expensive to buy outright, even used ones. But if you find finances to be a little tighter you might want to think about finance. This is a great way to get yourself a car if you can’t afford to buy one. With affordable monthly payments and a bigger choice, getting a car on finance might just be the clever option here.