Used car finance is a simple and straight forward process once you know how. If you have been burdened by a poor credit rating you don’t need to worry, you can still get used car finance and work towards the dream car you have always wanted.
When you do not have a pristine credit rating, it can often seem like the whole world is against you. You may be concerned that your applications will be turned down adding yet more bad credit ratings to your score. However, used car finance is easily accessible by the credit impaired and it can help you gain a foothold on the ladder to car success.
Before you begin, you need to dismiss those grand ideas of buying an expensive new car with finance, if you have a bad credit rating you will struggle to find a good honest deal on a brand new car that you qualify for. Choosing used car finance is the first step to mending your credit score and ensuring you have the vehicle you need. Used car finance will help you get back on the road today as well as help to secure bigger and better purchases later on.
Many finance companies will offer a variety of incentives for people with poor credit ratings to obtain a great used car deal. You are not alone when it comes to having a poor credit rating, and these companies are here to help you get back on track and start making the most out of your credit situation. Used car finance deals are much easier to obtain than a brand new one and can help you to prove your credit worth before you start applying for your dream car.
Not only does purchasing a used car give you the guarantee a new car can’t but it can also help to heal your credit rating along the way. If you make sure you choose a car you can easily afford and you ensure you do not miss any payments to your finance company, your credit rating will start to look better as the months go by which prepares you for the next car application you make.
It’s a good idea not to choose the car you want first and then work out the finances afterwards to fit it. This can lead to a stretched budget which can put your finances into jeopardy. Make sure you take into account all the extras that come with having a car such as tax, repairs and petrol and give yourself plenty of breathing room in case of an emergency so you can ensure your payments are regular and on time. Once you have created your budget plans properly and in depth you can then look at cars that fall within your price range. Remember that choosing a used car finance deal is your stepping stone to the car of your dreams, so make sure you choose the car to fir your budget and not the other way around.
Text message loans – Convenient but at a price
When you need money urgently and cannot afford the luxury of applying to a financial institution submitting various documents and completing the formalities, you need not worry. You can get instant loan by just sending a text message to the lending company who commit to transferring the required funds into your bank account within a few minutes.
This company is revolutionizing the way people get access to emergency loans. Very often, people fall short of money at super stores while checking out or need urgent cash to repair their cars. This kind of a facility has been long overdue and is being welcomed by people though some may tend to misuse it for frivolous reasons as well.
The facility however comes at a steep price. For a one week loan, the rate of interest is a staggering 994% APR. Moreover, there is also a processing or handling charge of £1, a registration charge of £1 for every text that you send requesting for the emergency instant loan.
If you delay repayment, you will find that the costs add up further at a rapid pace. A day’s delay in repayment pushes up your cost by as much as £25 towards administration and transaction fees and you thus end up with a sum of £135 to be paid.
The lending company waits for a period of 45 days beyond which it refers the case to its collection department who would levy further stiff administrative and processing charges. It is therefore important to use the loan for the moment and purposes required and quickly repay it so that it does not become a millstone around your neck.
The loan by text is a sophisticated version of the popular “payday loan” arrangement. The company that has launched this scheme has reported a very encouraging response from people and despite no marketing claims that the number of customers seeking this facility is increasing every week.
PCP car finance stands for Personal Contract Purchase and is one of the most popular financing methods used today for car purchases. PCP car finance can offer uniquely low and affordable payment methods on a monthly basis which have an added bonus of flexibility at the end of the contract. In a PCP car finance plan the finance company will purchase the vehicle of your choice on your behalf and then loan the car to you for a fixed monthly rate.
At the start of your PCP car finance contract the finance company will work out exactly how much the car is likely to cost at the end of your contract given the data they collect on expected mileage of use and the car in question. This figure is then used to calculate the “Balloon” sum at the end of the contract by comparing it to your monthly finance payments. At the end of your contract you can choose to either; close the contract and therefore terminate your possession of the car, trade the car in for a new car and establish a new PCP plan or pay the balloon sum to make up the remaining costs of the car therefore passing ownership to yourself.
The benefit of entering into a PCP car finance deal is the flexibility it can offer you depending on your situation at the end of the contract. If you are happy with your vehicle and you have set aside the correct balloon payment you can purchase the car in full at the end of your contract. If however you wish to try a different car at the end of your contract you can either sell the car and use the proceeds to cover the balloon payment and a future car purchase or you can trade in your car for a new one and obtain a new PCP plan. Finally, if you are unhappy with the car or the plan it self you can simply terminate the contract and have the car returned at the end of the term. You will not be able to get your money back through this method but you have effectively “hired” a car for the duration of the contract for an affordable amount. Under the PCP plan you are not obligated to purchase the car at all at the end of the contract and you have the choice to purchase the car if you wish, they won’t just take the car away at the end of your hire period.
PCP also offers security and peace of mind through its guaranteed minimum value set out at the start of your contract which means significantly reduced risk to you and your payment plan. In addition to this they ensure that your payments are much lower than a standard purchase premium allowing you to afford much more expensive cars than your budget would otherwise allow. PCP car finance plans also naturally come with a low deposit requirement allowing you to gain easier access to the car of your dreams.