Car Finance at RN Golden in Huddersfield
We offer a range of finance options to help you purchase your next vehicle. It’s our mission to provide the best deals for your needs and financial circumstances, so get in touch with our team if you’re thinking of buying your next car to find out what we can offer.
Types of car finance
There are multiple ways to finance a car, from personal loans to outright cash purchase, but it’s important to understand the types of finance options so you know which route is best for you.
This is when you pay for the car outright with your own funds – you won’t take out any finance contract. You’ll pay for the car in one single payment and own it outright straight away. If you don’t have the full purchase price available in cash, consider other finance options.
A personal loan is where you arrange a loan outside of the car Retailer, usually with your bank or building society. A personal loan is where you borrow a specific amount of money for an agreed payment term. You then make regular monthly payments to your bank until the full amount of paid back. Some banks offer specific car purchase loans, while others will have general personal loans.
A hire purchase finance agreement helps you budget by offering a fixed interest rate and monthly payments, so you know what you will pay each month.If you have a specific monthly payment in mind to meet your affordability, you can adjust the deposit and length of agreement accordingly during your application. This type of finance option usually allows you to drive a newer car with better specification.At the end of a hire purchase, you own the vehicle outright. This means you can keep driving it without further payments, or use it as collateral towards a newer vehicle.
Personal Contract Purchase
If you want lower monthly payments, a personal contract purchase might be the ideal finance option for you. With a PCP deal, you delay part of the payment until the end of the agreement, which keeps your monthly payments as low as possible.
The deposit, monthly payment, and annual mileage can all be adjusted to meet your needs. The final payment is usually known as a balloon payment and is calculated using industry data. The amount is often adjusted down so you have equity in the vehicle that you can put towards your next purchase.
At the end of the term, there are two options. First, you can pay the balloon payment and own the car in full with no further payments. Or, you can use the vehicle as a part exchange towards a new car and carry on with your monthly payments.