Tuesday, 9 April 2013

Are you looking for guaranteed car finance

What do you do when the time has come to look at changing the family car?  Over on The Mad House, I have discussed what I look for in a family car and how I have been lusting after a Honda.  In the past when we have purchased a new car we have opted for the finance provided by the car company and you can also get guaranteed car finance from Honda UK.

I am lucky in the fact that MadDad works in finance and understand the difference financing options, but it can be a minefield when you are looking to finance a new car.

There are lots of things to consider.  Do you want to own the car at the end of the finance deal?  Do you want your Honda to have a guaranteed future value and many many more.

So I sat down with MadDad and we looked at the options available and here is my Thrifty Mum explanations. 

Do you want your car to have a guaranteed future value, so you can either buy it outright at the end of a finance period, trade it in or hand it back with no extra costs?  If this is you then you would need to look in to Honda Aspirations.  Often with deals like this you have lower monthly repayments over a shorter period than traditional financing.

Do you want to own the car outright at the end of the financing   Id so, then it is Hire Purchase that you need to look into.  The costs are worked out by the amount you can put down as a deposit and the repayment period.  Monthly costs are then fixed in place. 

Do you just want a car to drive around in and not worry about anything else?  Then Contract Hire could be for you.  With this you pay a deposit and a fixed monthly fee dependant on the car and your milage.  You can even opt to pay for your maintenance on a monthly basis too so there are no surprises   At the end of a fixed period you just hand the car back and pay any excess due to mileage differences.

The thing to look at whenever you are going in to financing is to check the interest rates and make sure you ask if there is something you are unsure about.  Also always ensure that you can cover the cost of any finances in your family budget.

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