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    What is car finance?

    When buying a vehicle, some companies will offer you a finance scheme to pay for the vehicle, which will then be paid off in instalments.

    The concept of paying for a vehicle over time - rather than outright - isn’t new but manufacturers and finance companies are becoming more inventive with their products to help you into a new or used car. In fact some are so appealing, it can make financial sense to pay over time rather than all at once. In terms of personal budgeting, planning car finances so you know what it will cost you each month can also help you keep your bank balance out of the red.

    Different types of finance products will suit people’s varied needs so it is important to understand your PCP from a PCH or indeed whether a more traditional bank loan or hire purchase agreement would make sense. Brush up with our guides before you talk to a salesperson to help you receive the best deal.

    Technology is supporting new products too. For example, if you don’t have a good credit rating, it is possible to obtain car finance with firms fitting a ‘reminder device’ to your car. Quite simply, if you don’t pay each month, the device will disable your car.


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