subject: Benefits of Buying Cars on Finance [print this page] Author: Noah Back
If you are looking for the benefits of buying cars on finance, then look no further. Most notably the main benefit of buying via finance is being able to spread the cost of it over a number of months or years. This is very useful for consumers especially when the country is in a recession as people have less available money to spend on large items and luxuries. There are a number of car finance options available on the new & used car market nowadays. The shear number of option illustrates the popularity of buying cars by instalments instead of making the investment in one initial amount. Consumers and business fleet sales companies alike are keen to spread the cost of vehicle purchasing to aid them with cash-flow and manageable investments. Finance options when buying cars come in all shapes and sizes, hire purchase to leasing and contract hire. These types of payment plans allow the car buying public to pay monthly instalments whilst paying interest, hiring a car over a set period of time and then either handing it back or paying a lump some to purchase the vehicle. Cars on Finance Options and Their Benefits: Hire Purchase Hire Purchase offers the facility to pay monthly instalments which include a set amount of interest over an agreed period of time. At the end of the set period the vehicle is yours. Personal Contract Plan A Personal Contract Plan is very similar to hire purchase however you get to choose whether to buy the car at the end of the agreed time or hand it back. Personal Contract Hire Buying a car with Personal Contract Hire enables you to pay monthly in order to hire a car and hand it back at the end of the agreed term. Finance Lease for Business Businesses have the option of buying cars on finance via a Finance Lease for Business scheme. They pay monthly leasing costs and then pay a lump sum at the end of the term. With this option business can even benefit from any available equity from the sale of the vehicle to a third party at the end of the agreement. Lease Purchase Plan With a Lease Purchase Plan you pay monthly car rental charges and the car is yours at the end of the agreed term. Residential Value Lease If you choose a Residential Value Lease you pay an agreed amount on a monthly basis and then paying a lump sum at the end of the term. Contract Hire Finally you can choose Contract Hire which involves a fixed term agreement based on a pre-determined annual mileage, which includes running costs such as depreciation, road fund licence, Further benefits of Contract Hire is the option to upgrade your package to include extras such as servicing, maintenance, tyre and exhaust replacement, breakdown assistance and a relief vehicle. Clear Benefits of Car Finance It is clear that if you are considering buying a new or used vehicle that buying cars on finance has some very useful benefits for saving consumers the inconvenience of making a large initial investment.About the Author:
