The family car gives you freedom. It makes going to the supermarket easy. It makes going on a UK holiday fun. It makes visiting family and friends simple. There are lots of perks to owning a car when you have a family. However, like all things, these perks come at a cost. And sometimes it can be hard to imagine that you can afford that cost. However, there are always ways that you can buy the family car that you want.
Knowing where you stand with your credit score will help you make the right decision when it comes to finance. If you have a low credit score, it implies that you are a risk to lend to, and this could be because you’re unemployed, you’ve missed payments, or you’ve changed your address on a regular basis over a number of years. Checking your credit score with a credit report company will make it easier to see what you might be offered when you apply.
If your credit score is poor, then you may not have access to great finance deals, so could apply with a company like motorfinance 4U, who specialise in offering car finance for people with bad credit. This kind of company will work with a number of different lenders behind the scenes, so they can work with you to help you get the finance deal you need.
Lots of Options
Even if your credit score isn’t the best and you don’t have lots of money to spend, there could still be plenty of finance deal options available that mean that you can afford a car for your family. Hire Purchase is a popular way of getting a car on finance and it means that you can spread the costs across up to 60 months. PCP is an alternative that tends to be cheaper on a month to month basis, but you don’t own the car until you pay an agreed lump sum (on top of the monthly payments).
You could also use a guarantor loan, which is perfect for people with bad credit because it reduces the risk by getting someone with good credit to vouch for you.
A deposit will help reduce your monthly payments, but it’s not always necessary to have one in order to successfully arrange a loan.
Calculating your budget is an important step in the purchase of the family car – and sticking to it is even more important. Your budget should include running costs like insurance, tax and an estimation of petrol use to make sure that you can afford to pay for the car.
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