Have you ever found yourself looking at the neighbours Porsche in hope that you could someday invest in one yourself? Well, why not make your dreams a reality by buying one on finance? Below,with the help of George at Family Cars NI, are some of the reasons why Hire Purchase Finance is can be the most ideal method of payment when it comes to buying a car.
Hire Purchase Finance is an arrangement whereby you put down an initial deposit for a car, and pay the remaining expense in monthly instalments over a period of time agreed with the car dealer. This is one of the easiest ways of paying for a more expensive car, although this does mean that you do not own the car until the last payment is made. On the other hand, with other finance deals, such as PCP or PCH, you may never own the car.
Usually, with Hire Purchase Finance, there are fixed interest rates so that you know exactly what you will be required to pay every month, making it easier for you to monitor your instalments, and you will not have to worry about a large final payment when your contract comes to an end, which you would encounter with PCP finance.
If you have already paid half the cost of the car and you decide that you no longer want or need it, you might even be able to return it and draw a line under paying the rest of the instalments too.
If you fail to keep on top of the instalments, this might result in the car being removed from your possession and returned to dealer immediately, so it’s important to make sure that you thoroughly consider whether or not you will be able to afford the repayments before you enter the agreement. If you are struggling to keep up with the costs, alert your finance provider immediately, as they can advise you on the best course of action, rather than resorting to extreme measures.
As many positive factors as there may be with Hire Purchase Finance, there is also a negative side to it as well. Despite the costs being reduced into easy-to-manage portions, there is always a risk that you could run into financial difficulties, so you must take this into account.