Only a few years ago, your options for financing a new car purchase were pretty limited. Your choice was either to finance the purchase yourself using savings, a loan, or a credit card or by taking out a direct car finance package from the manufacturer.
These days, things are much more flexible. Of course, you can still opt to pay with a loan, credit card, or with your own savings and this can have several benefits. For example, your car will not be secured against the debt, which it otherwise would be with direct car finance. This can be crucial as if you are unable to make payments on a direct car finance arrangement, the car could well be seized and ownership will revert to the manufacturer or finance company.
That’s not to say that financial arrangements are all bad, though. They can give a huge amount of flexibility in terms of various options regarding buy-back at the end of your agreement, transferring the finance over to another new car after a year or two, or being able to pay much less each month and simply hand the car back at the end of the arrangement. Of course, another benefit is that the interest rates are often zero as opposed to double figures for credit cards or loans, which can make it a much more sensible financial arrangement if you’re sure you can meet all of the repayments.
If you’re buying a commercial vehicle, there are even more options available to you. The hire purchase on commercial vehicles through avenues such as Fiat Professional will give you a range of options including payment plans which include tax and insurance, allowing you to hand the van back once your finance package is fully paid or to get another new van and continue the arrangement. This sort of flexibility is specially designed for small businesses and these packages are often encouraged by the government to build economic growth, making it the perfect time to buy a new vehicle for your business.
Even if you’re buying a new personal vehicle, the options available nowadays are extensive, so careful research should be done to decide which finance option is best for you and your particular circumstances. What’s certain, though, is that there are big savings to be had.
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