If you are willing to purchase your car, you may be worried about the finances. Many people borrow their car with down payments. Some people also borrow by giving cash.

These days car finance is a good way to get your car. You can take your vehicle to your home on finance. There are pros and cons to this option that you have to understand and then go for it.

When you opt for car finance, you have to understand the detailing for it. With car finance, there come repayment terms. You have to pay monthly instalments that are fixed. With different types such as PCP – personal contract purchase, PCH or lease – personal contract higher and higher purchase – HP.

Understand these types of finances and choose according to your needs. Many online resources educate you about the different types of car finance. Research every kind and pick what is suitable.

In car finance, you have to be very careful with your finances. Irrespective of a new or used car, the process is expensive. It usually leads to bad finances for many people. Since they are not able to handle their finances, they suffer.

It is essential to align your dreams with your finances in order to make a wise decision. In 2019, around 1.5 million used cars were down on finance. This percentage shows an increase of around 9% from the previous year.

Get finance on easy terms

Most of the time, people prefer cash payments for their car purchases. This is one of the suitable methods for everybody as it does not put you in debt.

But when you are shelling cash from your pocket, it may leave very less money for you in future. Especially when you are buying a car, it costs you huge money. When you do not have much cash available, it may not be the right option for you.

In this case, it is essential to explore other options that are available around you. You can easily borrow personal loans for bad credit for your car as well. Utilize the possibilities effectively that are available around you.

Car finance options

1. You are aware of your payments

You are aware of the total amount paid for your car buying on finance. Month on the month, you are liable to pay a fixed amount, and you are aware of the repayment tenure.

Hence, you can budget your income every month according to your payments. There are no unexpected charges and costs to cater to.

Also, this includes the maintenance costs as well. According to the agreement, you can calculate the total amount and take a route to peace. Everything is predetermined, and you do not have to be curious about any other cost.

You can easily adjust all the costs in a month. Also, you can say for any unexpected expenses that may come in future.

2. No deposit is required

Most of the cars have a zero deposit option. Whenever you are getting a car on finance, there is no pressure on you to pay a deposit.

This works as a benefit for you. If respective of your bank credit, you can get a car on finance. This does not imply that you have to lower your credit score. Your aim should be to increase your credit score permanently.

3. You are offered despite a bad credit

As mentioned above, it is no hindrance to your car finance. You can quickly get your finance with a less than perfect credit score as well. Many borrowers do not get car finance from the bank.

 Bank may turn down your offer, but there are different lenders who can accept your offer. Some lenders work with less than perfect credit scores.

Hence, they turn up to lenders and get the right finance deal for them. You can easily pre qualify for personal loan without hurting credit further.

This forms a good option. It is essential to be honest, and transparent with the lenders to get your deal.

4. Helps in building a credit score

With car finance, you also get a chance to increase your credit score. If you are buying car finance, it helps boost your credit rating.

There are fixed monthly payments that are involved in car finance. If you repay them on time and with the exact amount, there is an increase in your car finance. It is essential to pay back your loan on time.

By having a good credit score, most lenders have increased the chances of being accepted. Also, payments will be on the lower side.

Once you pay your instalments on time, it brings various advantages for your future. If you have bad credit, borrowing debt consolidation loans for bad credit is the other way.

As per your existing situation, you can choose the right option. Any option that you choose will lead you in the direction of an improved credit score.

5. You can use any cash

Getting car finance will help you to save money for your other purchases. You do not need to put in all your money for your car.

For example, along with a car, if you are planning to buy kitchen equipment as well, you can use your money.

You do not need to depend upon others for your money. Many people get their car on finance and fund their essential expenditures with their money.

6. No cash lump sum is required

Car financing saves your Lump sum amount. Since your payment is divided into fixed monthly instalments, you are saved from paying a huge chunk of money at one go.

There is no need to pay thousands of pounds when you have the finance option with you. This is a good saving method for your future.

7. Your current car can be exchanged

Along with finance, you can part-exchange your current car. If you do not go with this option, you may face the hassle of getting rid of it privately.

But with car finance, you can part-exchange it and save some money on your repayment amount.

8. You do not have to worry about selling your car

What is the agreement is ended; there is no worry about what you do with your car. The finance that you choose plays a significant role in it.

Hence, before going with any type, check with the terms. You can either keep your car as your own or use a handbag. The choice remains yours.

9. The old car is used as a deposit

On your new car, you can use your car that is old as a deposit. If your existing car is more than the outstanding finance, you can use it as a deposit.

This works as the best option to save your money and your repayment amount. Eventually, you will have to repay a lesser amount compared to the previous amount.

 This option will help you save your money and lower your repayments.

10. Go for a higher model

If you take the car on finance, you can always buy a better car. If you had been paying with cash, there would be a limited option for you. But with finance, you can increase your budget and get.

Get good deals on the cards that are available. Also, you can buy a top range model with easy repayment options. You can consider buying a good car if you buy it on finance.


Buying a car is a big decision. Various finance options will ease the process for you.

Make sure to consider the finance option whenever you are purchasing your car. Do not spend unnecessarily when there are various lenders to help you out.  


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