Car Finance FAQ
Your Guide to Understanding the Basics
If you’re in the market for a new or used car, you may be considering financing as an option. Understanding the basics of car finance can help you make an informed decision and ensure you get the best deal possible. To help you on your journey, we’ve compiled a list of some of the most frequently asked questions about car finance.
Car finance is a type of loan that allows you to buy a car by paying monthly instalments over an agreed period of time. This allows you to spread the cost of the car over several months or years, making it more manageable and accessible to a wider range of people.
Car finance works by you choosing the car you wish to purchase, and then applying for finance through a lender. If your application is approved, you will then make monthly payments over an agreed period of time, until the loan is paid in full. The lender will own the car until the loan is repaid, and you will be responsible for making the monthly payments on time.
There are several different types of car finance, including hire-purchase, personal contract purchase (PCP), personal loan, and lease purchase. Each type of finance has its own set of pros and cons, so it’s important to understand the different options and choose the one that best suits your individual needs and circumstances.
A deposit in car finance is an upfront payment that you make when you take out the loan. The deposit helps to reduce the total amount you have to finance and the monthly payments you have to make. Depending on the type of finance you choose, you may be required to make a deposit, or it may be optional.
Yes, you can still apply for car finance even if you have a poor credit history. At motorlend, we consider customers with all types of credit history and work with a range of lenders to find the best solution to meet your individual needs and circumstances.
In conclusion, car finance can be a great option for people who want to buy a new or used car, but don’t have the funds to do so outright. By understanding the basics and considering your options, you can ensure you get the best deal possible and get behind the wheel of your dream car.