Vehicle Finance Explained
In 2016, new car registrations were up, 2.3% on the previous year. The UK new car market has seen new highs in five consecutive years. The reason behind this growth, is a wide choice of new car models, and affordable finance deals*. Nearly 8 out of 10 cars that are bought in the UK, are done via vehicle finance options.
Understanding the basics of Vehicle Finance:
- When you agree on a loan, you will pay interest, plus the cost of the vehicle
- APR (Annual Percentage Rate) is the rate which calculates the full repayable amount, including interest
- Your credit score plays a big role in deciding your APR
- The shorter the loan, the less interest you will pay
Paying back your vehicle finance loan
- Do not shorten the loan if the monthly repayments are not realistic
- Missed payments can result in additional charges, which can later lead to serious financial problems. Your credit score will also be effected
- Depending on your car loan, you could have your car repossessed if you fail to make your payments
There are a few options at your disposal when it comes to Vehicle Finance. Click on the links below to read more.
Do you have any other questions regarding vehicle finance? We have put together some of our most common questions. Click on the links below.