We recently covered why car finance is the best way to go when buying a vehicle for numerous reasons. One particularly important version of a car finance deal that you may wish to think about is looking at those which don’t require a deposit payment, because this will represent an even greater saving for you in the long-run, as we will explain.
To clarify, a deposit is an advance payment (generally around 10% of the total cost) which is taken just before the finance plan officially begins. This means that a significant percentage will already be paid for, and as a result, the monthly payment costs will be reduced as a result. In theory, it makes sense as a way to get a head-start on paying off your new car, but it can also prove to be a detriment, which is why a finance plan without a deposit might be the best way to go.
In terms of benefits, the primary bonus is that you won’t have to pay anything beforehand, meaning that you will only have to focus on the monthly costs. Though it means that you’ll be paying more slightly more money per month, the total price will not change. It also means that you will not have to find a significant amount of cash before the plan gets under way, allowing you to manage your overall finances with more stability as you enter the first few months of your deal.
This can make a huge difference, especially for somebody who is purchasing a car for the very first time. Depending which vehicle you require, and how quickly you need it, it can be a daunting prospect to suddenly find a four-figure amount to pay, just as an early deposit prior to the deal getting under way. But by removing the deposit, that particular amount can be evenly spread across the duration of the agreement alongside the already-scheduled monthly payments, making it a lot easier to commit to a long-term plan. It also means that you may have access to a greater number of vehicles, since you’ll only be paying several hundred per month in total, rather than a slightly lower regular payment cycle with a figure in the thousands being required beforehand.
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So, these are just some of the reasons why we are considered a leading car finance specialist, but you can learn more by contacting our vehicle financing team here or if you just want to browse our stock page first, feel free. For an instant No Obligation quote, Apply today or Call us on 01925 230360.