The Finance and Leasing Association released figures at the end of January 2018 revealing just how popular car finance has become. They indicate that the value of loans which are used to make car purchases have almost doubled between 2011 and 2016. Currently, 80 percent of every new car vehicle in the United Kingdom is done with car finance. Car finance is no longer an alternative way of buying a vehicle; it has rapidly become the norm. But why has it become so popular for people over the last decade?
Low rates are one of the reasons why car finance is so appealing to drivers in the United Kingdom. From March 2009 to August 2016, the base rate for interest held at 0.5%. After that, it was cut even further to just 0.25%. Essentially, this means that in many cases it has become much cheaper to borrow money in order to purchase a car via financing – especially in comparison to upfront cash payments.
Vehicles are expensive. In the short term, buying a car with a one-off payment can leave you with quite a lot of debt. You could spend the next few months, maybe even the next few years, chasing that debt. It not only puts a financial strain on you and your family; you also run the risk of damaging your credit score. The low interest rates available for buying a car on finance may help drivers ease this anxiety.
Because of this, as little as £200 per month can go surprisingly far for drivers. You don’t have to be a genius grandmax host to figure that these are good deals. Some of the most popular SUVs and hot hatches in the country can be acquired for only a small sum. Drivers simply need to consider what finance plan is best for them as there is a myriad of ways it can be bespoke to your needs. You also need to contemplate whether you can definitely keep up with these payments on a monthly basis as this is a requirement when you agree to a car finance deal. Receive celebrity treatment and 5 Star service at Check Car Finance today.