If you are considering purchasing a vehicle, you are
likely to need some form of new car finance. Honda car finance has a number of
attractive options, but you need to have an idea of the benefits and
limitations of these options to determine which is best suited to your needs.
Personal Contract Purchase
Agreements
Personal contract purchase is one of the most
popular options for Honda car finance. This is a good choice if you are not
planning on upgrading the vehicle for foreseeable future. The monthly
repayments are typically quite low with the provision to make a lump sum
payment initially. Your monthly repayments are scheduled for a set duration
with the balance of the finance due as a lump sum as a final payment. However,
there is some flexibility with this type of finance as you can choose to make
the final lump sum payment and keep the vehicle or return or part exchange the
vehicle against a new agreement.
Hire Purchase:
Hire purchase is considered to be a traditional form
of new or used car finance. This agreement allows for your to borrow the funds
needed and repay it back over a set term. The amount available to borrow is
typically dependent on the amount of deposit put down. Generally, the higher
amount of deposit, the lower the monthly repayments and the less interest is
accrued. Once the loan has been repaid, the ownership of the vehicle is passed
to you. Hire purchase is considered to be a secured loan and should you default
on repaying the loan, the vehicle is classed as security and will be subject to
repossession.
Credit Purchase:
Credit or lease purchase is
a similar form of Honda car finance to personal contract purchase agreements.
The main difference is that credit purchase does not have a provision to return
the vehicle at the end of the agreement. Typically, you can repay the loan over
a longer term and reduce the lump sum final repayment. Credit purchase
generally has a more attractive interest rate than many other forms of used car
finance. However, the longer the term for the credit purchase, the more
interest will accrue and the greater the overall cost. Most people consider
this to be the most affordable method of purchasing a new vehicle, as you can
set the monthly repayments to suit your particular requirements and budget.
All of these finance options
have particular benefits and limitations. Before you commit to a finance deal,
you should not only consider the interest rate and monthly repayment charges,
but the long term implications of the agreement. For example, you need to be
aware of the financial limitations of the arrangement and whether it will be
detrimental should you decide to upgrade or change vehicle before the finance
term has expired. This will enable you to make an informed decision and be
happy with your new purchase.
If you are looking for a new
or used Honda, contact us. We have a wide selection of vehicles and our sales
team would be happy to discuss Honda car finance options to determine which is
best suited to your needs.
Reference : hondacarsguide.tumblr.com
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