The easiest and fastest way to buy a new car is vehicle finance allowing you to pay only a small payment up front and the rest in monthly installments.
Here are five questions about vehicle finance answered for you.
1) What Does Vehicle Finance Actually Mean?
Vehicle finance allows you to cover the cost of an agreement, over a specified amount of time. Instead of paying what you’re due in one payment, you continue to pay in smaller amounts over an agreed amount of time.
2) Do I Qualify for Vehicle Finance?
There is no clear-cut answer for this. The reason for this is that qualifying for finance will depend on the firm, lender, and your personal circumstances. However, you should be able to find a way to qualify for vehicle finance as there are many options out there. Below, are some of your options:
- Personal Contract Hire: This option sees that you rent a vehicle for an agreed period of time. At the end of that amount of time, you hand over the vehicle, and that’s it. This option is known as PCH, or Business Hire.
- Personal Contract Purchase: The Personal Contract Purchase option, or PCP, allows you to pay a deposit for the vehicle and, over an agreed amount of time, you then make monthly repayments. At the end of your agreed amount of time, you can choose to keep the vehicle, or you can choose to trade it in for a replacement. You could also choose to return the vehicle for good.
- Hire Purchase: This option will have you put down a deposit upfront. You will pay off the rest of the vehicle in monthly installments over time. This option is abbreviated to HP.
3) How Long Does Vehicle Finance Take to Get Approved?
This process should not take more than 48 business hours. A credit assistance provider will have to make sure that everything is cleared before you get the okay, though. They will need to make sure that the loan they provide meets your requirements, and that the loan won’t put you in financial hardship immediately or during your term.
4) What Do You Need to Get Vehicle Finance?
You will need the following:
- Your driver’s license.
- Your insurance card.
- Two of your most recent pay slips.
- Proof for your residency. E. a utility bill with your name.
- A list of references. Not people you live with.
- Any trade documents with a title and registration.
5) How Can I Transfer Vehicle Finance?
You can pay an agreement early and get a new vehicle if you so choose. You can also see if the dealer will settle the finance as they may be able to. Another option is to see if you’re protected through the Halves & Thirds Rule.
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