Explaining different finance options

Added: 02 November 2018

If you are looking for a car, then look no further than Dicksons of Inverness and Forres. They offer a wide range of new and used Nissans, Suzukis, and Kias for you to purchase. But, they also know that not everyone can afford to buy a car outright. It is a lot of money to spend, and it is just not possible for everyone, but with financing it is. Dicksons offer a few different financing options, so there is going to be something to suit everyone. Down below, we are going to discuss these options so you can make a decision on which would be best for you.

Motor Vehicle Finance

Hire Purchase

This is usually the most popular option and is the traditional one. What this means is that you will loan the vehicle, but in the end, when you have made all the payments, you will then own it. This plan will include a fixed cost over the agreed period of time, so you can easily spread the cost over this period in instalments that suit you.

When you take this type of leasing option, you are the owner of the car. The only thing is that the title of the car will not be transferred into your name until you have completed all the payments and the option to purchase fee. So, if you are looking for Suzuki finance, Kia finance, or Nissan finance and this option sounds appealing to you, this is the place for you.

The most obvious benefit of this is that you do not have to pay the full amount upfront, but you still end up with a car. Other than this, payment terms are usually flexible, so more often than not you can work with a payment plan that you can afford and if your financial situation changes, the company may be able to help you come up with an alternative plan.

Lease Purchase

If you lease purchase a car, the ownership of the car will be transferred into your name when all the payments and the option to purchase fee have been paid. Part of the cost may be deferred into a balloon payment which you will pay at the end of the agreed term. This usually equates to the anticipated value of the vehicle.

The benefits here are that the payments tend to be significantly lower than other types of financing due to the balloon payment at the end. Or, you might pay a larger deposit upfront. This might allow you to afford a higher specification of car.

Personal Contract Purchase

This option is becoming increasingly popular due to the low monthly payments that it entails. This option is the most flexible of all three. What happens is that your vehicle’s guaranteed future value will be calculated at the beginning of the term and this will be based on how old your vehicle is and how many miles that you are likely to do throughout the agreement.

The good thing about this option is that you do not have to decide until the very last payment whether you actually want to purchase the car. There is no obligation to do so which means that you can either part exchange the car, buy it, or return it with no extra charge if you are within the mileage that was calculated.

We hope that this article has helped you understand some of the finance options for vehicles and their benefits. Contact us today to find out more.

Motor Vehicle Finance

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