Interesting Info 27 Apr 2016

Car Finance – Different Types

Car finance can help put your fantasy car in your garage. This is how to choose the right type of funding for you.

Car finance is the ideal solution if you long to own the luxury car of your dreams, but know that you couldn’t afford to buy it outright. Brands such as Mercedes-Benz, Ferrari, Aston Martin and Lamborghini are just some of the marques you could choose from when you set up a car finance deal with an expert car finance company, who specialises in prestige motors. They will help you ascertain what the best type of repayment plan will suit you, and how much you can afford each month. These are your options:

Car Finance – Hire Purchase

Hire purchase is one of the most common – and easiest – forms of car finance. After choosing your dream prestige car, you then decide how much you can afford to pay as a deposit, generally between 10% and 50% of the full price. Next, you arrange a fixed rate of interest, enabling you to make fixed monthly payments over 12 – 60 months. This straightforward form of car finance has the benefit of allowing you to budget for your monthly payments without any fluctuating interest rates. Other benefits include:

  • Choose a low deposit so it doesn’t use up personal or business assets
  • You can choose the term of repayments and the deposit level
  • The fixed monthly payment makes budgeting simple
  • You gain an asset with ownership of the car
  • Business owners benefit from tax allowances
  • VAT free payments

Car Finance – Hire Purchase with Balloon

This form of car finance is similar to the simple hire purchase plan, except you make smaller monthly payments, and pay off the remaining balance at the end of your repayment term. You then have a number of options at the end of the agreement, including car purchase, refinance, part-exchange or resale. The key benefit of this type of car finance is that you can choose a higher specification of vehicle due to the lower monthly payments.

Car Finance – Balanced Payments Plan

If you are looking for a form of car finance that offers you variable interest rates in line with the bank base or finance house base rate, then a balanced payments plan is for you. As the interest rates rise and fall over the period of the contract, so does the interest that you pay on your dream car. At the end of your agreement you will settle the difference either as credit or a charge. It is still quite similar to the hire purchase car finance agreement, in that you pay your deposit, then choose fixed monthly instalments over an agreed term. You can also include a deferred balloon payment in this type of car finance plan.

Looking For Car Finance? Speak To Oracle Finance.

Oracle finance is the UK’s leading specialist funder of prestige, sports and luxury cars, with over 20 years’ experience. Its team of expert staff have delivered over £50million of prestige car finance this year alone, offering an outstanding and unique level of customer service to clients. Oracle Finance also offers funding solutions for the purchase of high-value aviation and marine assets, and has a specialist asset finance division funding commercial vehicles, plant and machinery and other business assets. To discuss your requirements or get a quote, contact Oracle Finance on 08450 944997 or email