Car Finance Choices

Dealership finance remains the most popular method of funding a new car purchase. But despite this, many women tell us they get confused by part exchange complications during dealership negotiations – especially when the likes of breakdown cover and other optional extras are added in.

Which is where FOXY can help; sometimes a second and entirely independent opinion can help Club members see the best solution for their financial needs.

How To Pay For Your New Car

Clearly cash is the easiest way to pay for a new car but not everyone has enough to spare. Yes there are a lot of credit card deals that look good value but most of us are baffled by acronyms including the annual percentage rate (APR) and whether to opt for hire purchase (HP) where you end up owning the car or the more attractive looking personal contract purchase (PCP) rates.

Personal Contract Purchase car deals

PCP is popular and we describe it as renting a car. It’s subject to annual mileage limits, an uncertain guaranteed ‘future value’ and you may or may not end up owning the car depending on the final ‘balloon’ payment. Aptly named really because this is when the total price can soar sky high.

But you can carry on paying a monthly charge for a new car instead, which the majority of motorists do to avoid this scenario, so for many FOXY Ladies this isn’t an issue.

NB: Always choose a contract that best reflects your likely annual mileage. We see cheap PCP deals based on c6000 miles a year, then hear of how much is then charged as a mileage extra where this is exceeded. Always compare like-for-like deals and read the small print closely.

Other Car Finance choices

And then there’s the Consumer Credit Act, where terms, conditions and credit risks should be explained to you and your personal needs and circumstances assessed.

The important point here is that you could end up paying £‘000s more for your new car than you need to if you don’t choose the right car finance deal; not knowing you had a choice, or how to end up with a much better deal.