Types of Car Finance
There are lots of decisions to be made when buying a car including what type of finance to choose. Below are explanations of 2 popular types of car finance.
With Hire Purchase finance, you lease the car directly from the car finance company. This means that you will be the registered keeper of the vehicle throughout your payment plan and have complete responsibility for the car.
With PCP deals, there will be maximum annual mileage on the car. This will be detailed in your agreement. If you exceed this maximum annual car mileage, or the vehicle is damaged past that considered ‘general wear and tear’, you may have additional charges set by the lender. Details of such possible charges will be specified in your initial PCP car finance agreement.
Why We Suggest Lenders
At Motor Finance Scotland we will collect some basic personal details to conduct a soft credit search. This type of credit search leaves no mark on your credit record visible to lenders. It is however enough information to help show you a panel of lenders ranked by the likelihood of you being accepted for credit.
Lenders we recommend are among the leaders in the market, allowing us to provide you with the best rate no matter what your credit rating is.
Your Credit Rating
Excellent
Good
Fair
Poor
Your credit rating is an estimate of your ability for meet your financial commitments, this is calculated based on your credit history. It is good to keep an eye on your Credit Rating, particularly if you are looking to purchase something like a mortgage for a house or a new car. Your rating affects how trustworthy companies feel you are and the better your credit rating the better the rates you will get.