How safe is buying a car on finance
If you have made the exciting decision to purchase a new vehicle, you are probably looking into all the available options. Do I buy with cash? Should I go with car finance instead? These are questions that are probably going through your mind at the moment.
Don’t worry, anyone who has ever purchased a vehicle was faced with a similar dilemma. Although, car buying can be an exciting and fun experience, it can also be stressful and frustrating. Nobody wants it to be the latter, which is why we want to help people make the experience as hassle-free as possible.
One of the questions that we encounter a lot, when it comes to car finance is “How safe is buying a car on finance?”
It’s a reasonable question that not many people have the answer for, especially if they haven’t gone through the whole process ever before.
So, how safe is car finance exactly? Well, let’s find out.
First, we need to understand what car finance actually is. You probably already figured out that it has something to do with cars and finance, if so – you’re right. Although, car finance is a broad term that involves many different things and covers a variety of areas, it means exactly what you think it means. It describes the process of purchasing a vehicle on finance. It’s quite similar to any other form of finance such as a loan or a mobile phone contact. It involves the lender, receiving a product, in this case a car, and paying for it over an agreed upon period of time that could be anything, from months to years. Now, that’s the simple explanation; however, as mentioned above there are different options that stem from car finance.
Hire purchase and personal contract purchase, are terms you have probably heard before, as they tend to come up quite a lot when talking about car finance. In fact, they are the most popular options that basically make up car finance.
We’re not going to explain them in-depth here; however, if you want to know more about car finance as a whole, and have a better understanding on the processes that it involves, you should definitely read up on the two terms.
Now that we know a little more about what car finance involves, we can begin answering your question.
So, is car finance safe? The short answer is, yes!
It doesn’t matter which option you go with, as each offers a great deal of protection. First of all, before you receive your vehicle, you sign a contract agreeing to terms and conditions. You promise to pay for the car in regular instalments, and in return the car finance provider promises to give you the car in question. Due to the fact that contacts are involved, it would be nearly impossible for the provider to do anything dodgy or unfair.
If you think about it, they are the ones taking all the risks, as they are giving you a vehicle that you haven’t yet paid for. Who’s to say you’re not going to run off with the car, never to be seen again? Both parties have something to lose, should the other decide to breach the terms of their contract; therefore, it’s beneficial to everyone that necessary formal procedures are in place.
If you don’t make your payments, your vehicle will simply be repossessed, giving the finance provider what is rightfully theirs. If, on the other hand, you make your regular payments, and your term comes to an end, you get to keep the car and both parties go their separate ways. It’s quite simple actually, and there’s nothing to worry about.
You can always read some online reviews to learn about other people’s experiences. This could give you a peace of mind, so if it helps – why not give it a go?
The most important thing that you can do prior to signing anything, or paying any money, is research. Do your research, and learn as much as you can about the process that way, you’ll know if you are getting a good deal or not.
Another important thing that is crucial, when purchasing a car on finance, is choosing the right finance provider. There are thousands of them out there, so it can be quite tricky to pick the most reliable one; however, going back to online reviews – they’re a great way to start.
Learn as much as possible about the process, find the right finance provider, and you’re guaranteed to have a stress-free car buying experience.
At Trusted Car Credit we offer extremely competitive rates for anyone looking to buy a car on finance. Whether you’re looking to buy and SUV, a luxury car, or something much less extravagant, we will do our best to help you. Simply fill out are quick and simple online application form and come one step closer to owning the vehicle you’ve always wanted.