Choose Your New Vehicle Finance Options
Vehicle Finance Today is a credit broker, not a lender. Our rates start from 7.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £6,500 over 48 months with a representative APR of 19.8%, the amount payable would be £191.62 a month, with a total cost of credit of £2,697.76 and a total amount payable of £9197.76. We are located at Old Generator House, Unit 3, Bourne Valley Road, Poole, BH12 1DZ.
How New Vehicle Financing Works With Vehicle Finance Today
Taking out a new vehicle loan can offer fantastic peace of mind. There is less stress about maintenance costs, you don’t need to worry about the vehicle’s history, not to mention the fact that things like your vehicle insurance and road tax will almost certainly be cheaper. So if you’re looking to get a new vehicle on finance, how does the process work?
First, you’ll need to complete our online application form, which shouldn’t take more than a few minutes to fill in. At this stage, only soft credit searches will be performed, which means there’s no impact to your credit score. Next, we’ll compare the lenders in our network and do our best to put you in touch with a suitable finance provider. We’ll take into account your individual requirements, such as how much you’re looking to borrow and the amount you can afford to pay each month towards the vehicle.
After approval, you’ll be able to choose your new vehicle from any reputable dealer, and sign the agreement with your lender. You’ll then make monthly payments to your vehicle finance provider, until you own the vehicle outright, or your term ends.
What are the Types of New Vehicle Finance?
We offer a variety of vehicle finance arrangements, including the most popular ones below:
When buying a new vehicle on finance, there are two main options to choose from – Hire Purchase (HP) and Personal Contract Purchase (PCP). Each comes with their own pros and cons, so which one to opt for will generally depend on your financial and personal situation.
One thing to remember with HP and PCP is that they’re both secured loans. This means that the vehicle acts as collateral against the loan. The downside to a secured loan is that if you’re unable to keep to your repayments, you’re at risk of losing your collateral. But one of the advantages is that secured loans generally have lower interest rates than unsecured loans, and can be easier for people with bad credit to obtain.
Hire Purchase (HP) – With a hire purchase agreement, you’ll typically need to pay a deposit of about 10% of the cost of the vehicle, and then make fixed monthly payments over the agreed time period. Once you’ve made the final payment, you’ll then own the vehicle outright. Hire purchase arrangements can be incredibly competitive for new vehicles, so this is a popular option if you’re looking to purchase a new vehicle.
Personal Contract Purchase (PCP) – A personal contract purchase tends to come with lower monthly payments than HP, but they are fairly similar overall. You’ll generally need to make an initial deposit, and then monthly instalments moving forward. The main difference is that you won’t be covering the cost of the vehicle, but the depreciation instead. So at the end of the term, you can choose to make a balloon payment to pay for the vehicle, trade in the vehicle for a new vehicle, or simply hand back the keys and walk away.
Benefits of Buying a New Vehicle
There are a lot of benefits of buying a new vehicle versus a secondhand vehicle. We’ve listed some of the top reasons customers choose to buy a new vehicle below:
- A new vehicle won’t come with any unknown history as you’ll be the first owner
- You’ll generally save money on fuel and maintenance costs, as new vehicles tend to be much more fuel efficient and come with all sorts of modern features
- You can essentially build your perfect vehicle, choosing the design and details you want, from interior specification to body colour
- New vehicles come with manufacturer warranties, of at least three years
It’s also good to bear in mind that with new vehicle finance, buying a brand new vehicle can be very affordable. You don’t need to pay the whole cost upfront, but can spread your repayments over a number of years.
New Vehicle Deals – Buying a new vehicle will probably mean you’ll be working with a local dealership. The advantage of this is that many dealers will try to price match, or offer you a lower price than their competitors. So you know you’ll be getting the best deal possible on your new vehicle.
You can choose from leading manufacturers, including BMW, Citroën, Dacia, Ford, Hyundia, Nissan, Peugeot, Renault and Vauxhall. No matter what type of new vehicle you’re looking for, there’s bound to be great deals if you’re willing to shop around!
