Cheap car finance
Each car manufacturing company would have dealer who takes care of its sales and service. The finance given by the dealer to purchase a car is called the car finance or it is the loan available from an authorized dealer of a particular car.
Once a person decides to purchase a car of his dream, he could go to the dealer of that particular car company and get the car with the car finance. Car finance is also available to purchase used cars of the same company. It would also be available for a person with a bad credit history (Car Finance, 2007).
Car finance is available in three forms, personal contact purchase (PCP), lease purchase (LP) and hire purchase (HP). In the case of hire purchase the payments are made evenly for a particular period of time. In the case of lease purchase financing, the payments are made in equal monthly installment over a period of time with an agreed final payment at the end of the loan period. Personal contact purchase is almost similar to LP except that instead of making the final payment, the borrower has a choice to return the car as such to the dealer, provided the agreed mileage is not over. He could also sell the car for a profit and use the profit margin as the base for a next contract with the dealer. In this case the monthly payment is less compared to other types of financing. But the owner of the car would be the dealer, until the final settlement (New car finance, 2007).
There are many dealers for a single car company in UK. There is a high competition between these dealers in selling the cars, which would make financing all the more easier and cheap. Together with the added advantage of services offered by these dealers after the sales, it would be better to go in for car finance from a dealer rather than a car loan from a private lender.
References
Car Finance (2007) [online] Available at: http://www.carfinance.co.uk/ (accessed on 17/12/2007)
New car finance (2007) [online] Available at: http://www.uk-car-discount.co.uk/finance/index.aspx (accessed on 17/12/2007)
