A lot of important factors need to be considered before you sign up to a car finance plan. One of those is, of course, the financial aspect, and how much the vehicle is going to cost you. And we don’t just mean the monthly amount, and we also don’t just mean any required deposit prior to the plan beginning. Today, we are talking about interest payments, and why it can benefit the customer to sign up for a plan that is interest-free.
Many organisations include interest on major purchases, and it is no different when it comes to car finance. The monthly amount might seem appetising enough, but then with the added interest, it can jump up to a level that could prevent you from agreeing to a deal. Of course, interest rates will vary between companies, as well as varying between the cars themselves, and the level of interest may also be based on your own financial situation. Numerous issues impact the amount of interest required.
But what if you didn’t have to pay interest? There are certainly situations where you can agree to a car finance deal that does not require any interest whatsoever. This has the obvious benefit of saving you money, and also making the deal a lot easier to understand since the monthly payment amount listed online will not change at all. It means that you can put aside more money for other things (such as a mortgage), since you won’t have to worry about spending more in interest. And in relation to an earlier point, in the aforementioned case of the car which had the feasible-enough monthly cost, that suddenly becomes a much more viable possibility, since that is all you will be paying each month and nothing more.
Some finance plans offer interest-free purchases, and others do not. Some finance companies offer interest-free deals, and others do not. It is vital to understand what you are agreeing to, and to have such an agreement in writing. So, if you are being offered an interest-free plan, make sure you have it in written form with signatures by all parties. The last thing you need is to sign up to a plan with the misunderstanding that you won’t have to pay interest, only to learn at a later date that, in actual fact, you do. So, while interest-free car finance plans are available, you need to have complete clarification that you are getting exactly that, and that there will be no unwanted surprises to discover later on.
Finally, of course, you are welcome to visit our car dealership in Warrington, Cheshire. You’ll find us on Hawleys Lane (WA2 8JP is the postcode to put into your satnav) and we are open 9am-8pm weekdays, 9am-6pm Saturdays and 10am-6pm on Sundays.