As car finance specialists, it's only right that we provide answers to the most commonly asked car finance questions.
Here, you'll find the answers to help you better understand different types of car finance and the car finance process as a whole.
At Rix Motors, we understand the diverse needs of our customers. Our extensive selection of automatic cars for sale in Warrington ensures that you'll find the perfect vehicle to match your preferences and lifestyle - There's something for everyone at Rix Motors.
Automatic cars are known for their performance, reliability, and advanced features. Rix Motors takes pride in offering well-maintained, quality vehicles that undergo rigorous inspections to ensure your peace of mind.
Once you feel ready and confident, you can apply to finance one of our cars directly on our website.
What Are the Different Types of Car Finance?
Hire Purchase (HP):
With Hire Purchase, you make fixed monthly payments over an agreed-upon term, typically between 12 and 60 months. Once the final payment is made, you own the car outright.
Personal Contract Purchase (PCP):
PCP involves lower monthly payments compared to HP. At the end of the agreement, you have three options: return the car, pay a lump sum to own it, or use its value as a deposit for a new agreement.
Personal Loans:
You can also opt for a personal loan to finance your car. This provides flexibility, as you own the car from day one and can negotiate the loan terms independently.
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Can I Apply for Car Finance With a Provisional Licence?
Yes, many lenders accept applications from individuals with a provisional driving licence. However, the terms may vary, and it's advisable to check with specific lenders about their policies regarding provisional licences.
What Do I Need for a Car Finance Application?
Typically, you'll need to provide:
- Proof of identity (passport or driving licence)
- Proof of address (utility bill or bank statement)
- Proof of income (payslips or bank statements)
- Details about the car you intend to purchase
Can I End a Car Finance Agreement Early?
Yes, it's possible to end a car finance agreement early through voluntary termination or an early settlement figure.
Voluntary termination is an option under certain agreements, allowing you to return the car and terminate the agreement if you've paid at least half of the total amount due. It's important to note that voluntary termination won't affect your credit score.
If you decide that you want to seek a car finance settlement, you'll need to pay the total amount of money remaining to your lender. To do this, you'll have to approach your lender and let them know that you want to see an early settlement figure, they will then calculate that figure and get back to you.
Can I Sell a Financed Car?
Selling a financed car is possible, but the process varies based on the finance type. With HP, you'll need to settle the outstanding balance before transferring ownership. For PCP, you can settle the agreement or use the car's value to pay off the finance and transfer ownership.
Can I Get Car Finance With Bad Credit?
Yes, it's still possible to secure car finance with bad credit. Some lenders specialise in providing options for individuals with less-than-perfect credit histories. However, be prepared for higher interest rates and possibly stricter terms.
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Remember, each finance option has its pros and cons, and it's crucial to choose the one that aligns with your financial situation and preferences. If you have specific questions about Rix Motors' finance options, don't hesitate to contact our finance team for personalised assistance.