Cars have become the necessity in today’s life. However, the 4-wheelers still remain one of the most expensive buys in a country. For instance, in the UK, cars are the second most expensive purchase for the consumers. This is exactly why consumers prefer for cars on finance rather than making a full up-front payment.
What do you mean by cars on finance?
Now let’s come to the question as to what are cars on finance. Car finance is nothing, but a loan. You would need to deposit a percentage of the entire cost of buying the car, while the rest would be paid off by a company offering car finance. So, the purchaser is obliged to sign an agreement settling to pay a stipulated amount per month till the overall loan is paid off. The trend of car financing has been around for quite some time now. Many people, who are eager to buy a car, may not have enough cash or capital in hand. Buying cheap cars in finance also has several advantages. Financing a vehicle, when the interest rate is low, saves you a great deal of money.
Ways to get cheap cars on finance
There are ample of ways in getting cheap cars on finance. You can give your application directly to a finance company. They would offer you a loan of a specific amount. Now you would have to find a car matching the price. After all the checks and scouting have been carried out, the car finance company would transfer the funds to the car company. Now, you are ready to drive away.
What all do you need to apply for a car finance
- Good credit rating
- Full time verifiable employment
- Bank statements
- Proof of employment
- Address history of the preceding 5 years
- Proof of salary
- Current account
- Photo ID like passport
- UK driver’s license
How much can you borrow?
Well, it is really dependent on how much money you are earning on a monthly basis. Also, it will depend on your outgoings. The latter would decide how much you can afford to pay back as well as over what period of time. Of course, you would never want to opt for a car that would cost you so high so as to erode all your net balance. So it is a wise idea to go for cheap cars on finance. The amount of money that you can put down as deposit also determines the amount you can borrow.
When the cost reduces all the more?
Cheap cars on finance become all the more cheap if the car possess added security features. Besides providing protection, the security features can also trim down the amount on car insurance. Those whose vehicles have immobilizer, alarm system and tracker are expected to have the cheapest insurance premiums. The reason behind this is that the set of wheels with safety features have the lesser chance of being stolen or encroached upon. Also, the highly beneficial alarm system alerts you while the intruders try to break into your favourite set of wheels. The immobilizers shield you car from the encroachers by inhibiting the car from being started by the interlopers. Moreover, the trackers help you find your stolen car.