Everything you need to know about car finance

If you are looking for a new car, how you choose to fund your purchase can have an impact on what you are able to afford. Finance is an increasingly popular method of paying for vehicles as it can expand your options greatly. As an expert in arranging used car finance in Barnsley, Car Credit Now can provide expert advice and support. Here are the main things that we think you need to know about finance.

What is car finance?

Rather than buying your vehicle upfront in a large cash sum, finance allows you to start driving a vehicle after only paying a fraction of the cost (a deposit) and then you will pay the remainder in monthly installments. A finance provider will essentially purchase the car on your behalf and you will pay them back over a set period of time.

What are the advantages of car finance?

• You won't have to save up lots of money to purchase a vehicle outright
• Your monthly budget will most likely enable you to afford better, newer and higher-specification models than your cash budget
• The cost of the vehicle will be spread out into manageable monthly payments rather one, large daunting payment
• Monthly payments will be fixed
• You can adjust your deposit amount and contract term so that your monthly repayment amount works for your budget when you apply for used car finance in Barnsley with Car Credit Now

Types of car finance

There are two main types of car finance agreement that you may want to consider: hire purchase (HP) and personal contract purchase (PCP).

• HP: your deposit and monthly payments will add up to the total value of the car and at the end of the agreement, you will become the owner of the vehicle.
• PCP: your deposit and monthly payments will cover the cost of the car's depreciation while in your possession. At the end of the agreement, you can choose to return the vehicle or make a balloon payment to keep it.

How to apply for car finance

To apply for used car finance in Barnsley with Car Credit Now, complete the easy step-by-step application process on our website!