Car Finance at Struans

If you are looking to purchase your next car, you might be looking for the best way to finance your new vehicle. Thankfully, there are a wide range of ways that you can finance a car, so there’s something for everyone, no matter what your circumstances are.

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 if best for you.

Cash purchase

As the name suggests, a cash purchase is where you pay for the car with your own cash assets, so the final price of the vehicle is likely to be important to you, based on the cash amount you have available at the time.

Cash purchases historically are one of the most popular ways to fund your new vehicle, but it’s a method becoming less popular as other options are now on the table.

Personal loan

A personal loan is where the car buyer will facilitate the loan outside of the car dealership, usually with their 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.

You will use these funds to purchase the car outright, similar to a cash purchase, but it’s an option that is less limiting to the amount you can afford, as you will usually borrow based on the purchase price.

Hire Purchase

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 will own the vehicle outright so you can then use the car as collateral towards a new vehicle or keep it for a little longer if you wish.

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.

You can then either pay the final amount and keep the vehicle or part exchange towards a different vehicle and continue with monthly payments.

You can use the finance calculator on our used car listings to see what finance offers are available and we have a range of fantastic finance offers available on our new cars.

If you need more assistance, you can speak to our friendly team, simply get in touch with us on our website.