We’ve taken a look at why buying a car on finance is safer and more popular than ever. Owning a new car is something we have or will aspire to at some point. To afford this dream more and more of us are turning to finance, with statistics showing that more than one in every three car is now being bought with the help of finance.
According to the SMMT, the Society of Motor Manufacturers and Traders, sales of new cars now account for almost half of the entire private market at 45%. It’s never been more painless or safer to buy a car on finance, and the days of endlessly saving for a car that doesn’t even live up to your expectations could be over. Now many car buyers are turning to credit to make their dream car a reality at a sensible price. The trend of buying a car on finance was popular back in the 1990s, but the recession caused an inevitable decline in figures. But, since the beginning of the economic recovery, the amount of people buying a car can finance has risen dramatically year on year. So, the thousands of people opting for finance packages every week can’t all be wrong. Can they? The honest answer is no.
The car sales market is strictly regulated, not to mention the industry is also strictly regulated by the FSA, the Financial Services Authority. As long as you budget your finances sensibly and have a reasonable income, buying a car through a finance plan means you can enjoy a new car without having to pay the whole amount upfront. Much in the same way you’d take out a mortgage to buy a house, you can pay off the car’s total value over time and own it outright at the end. Plus, there are many 0% interest deals available, which means your payment can be made in instalments over time without incurring interest fees.
The car sales market is competitive, and this can only mean good things for the consumer; as dealerships compete, they offer more and more incentivised deals to attract customers. Plus, the requirements for lending money for a car have not been so dramatically tightened as getting a mortgage, for example. This means buying a car on finance is much more accessible to everyday hardworking folk.
It doesn’t just have to be used cars in Scotland that you would choose to buy with the help of a financial deal. Many people choose economy cars with high miles to the gallon, lower insurance premiums, and lower running costs. This means buying a car on finance is perfect for families too, as they’re more economical for everyday life. There’s nothing worse than trying to save money by buying an older car, to find that it constantly needs to be repaired and therefore cost more than a higher grade car in the first place over time. Avoid this false economy and spread the cost of a newer car over time.
Although buying a car on finance has never been easier or safer, it’s not a decision to be taken lightly. This is why it’s important to get expert advice from an experienced car salesperson, who can help you decide what sort of plan to pick, how much you can afford to pay each month, the length of contract you should go for and the size of your initial deposit.
We believe that no one is better qualified to help you make this important decision than our experienced Sales Executives who will give you an open and honest assessment of your needs and help you choose the right plan for the right car.