Carcraft provides all kinds of services for people looking for a used car, or those who simply love cars.  Along with guides on various types of cars, Carcraft can also assist with financing a new or used car for a buyer.

Carcraft car finance offers a range of options to suit any car buyer’s budget.  These options are designed to fit a variety of situations so that everyone can find the financing option that is right for them.

Carcraft even has its own finance team working with customers.  This allows Carcraft to design a finance package that is tailored to each driver.  Regardless of their budget or other concerns of the buyer, Carcraft car finance can customise financing to each individual person.  Carcraft does this by working with many different finance companies.  This allows them to offer a wide range of finance options to fit any person’s situation.   

Carcraft also allows people to spread their payments over several years to make repaying their loan easier.  People can choose to pay for two, three, four or even five years.  This allows some flexibility in the financing of the new or used car.  The initial deposit is also flexible; it can start at as low a price as £99, or go up to whatever the person can afford or wants to pay.  In addition, Carcraft offers to adjust the APR on the loan to fit an individual’s needs and personal circumstances.

Carcraft can also offer a bespoke car finance package to suit each individual.  Car buyers simply need to talk to a Carcraft representative about what they can afford to put down and pay.  Then Carcraft will work with the person to craft a financing package that works for them, bearing in mind the kind of car they want.

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There are many online companies offering car credit so it is essential that the buyer shop around to secure the best deal. Car credit online has the advantage of being easily comparable with other companies that may have been approached. It is possible to apply provisionally for car credit even before seeing the car wanted for purchase, because in that way one has definite repayment figures and a set APR which makes it really easy to stay within the parameters of the initial loan amount without being seduced into spending more than can comfortably be afforded.

Online car credit companies usually gives an on the spot decision and the loan can be held good for a certain amount of time, giving the buyer time to beetle off and secure the vehicle itself. The same is true of High Street lenders; car credit can be applied for and obtained provisionally with a shelf-life of, for example, two weeks so that a prospective buyer can car shop with confidence knowing the finance has already been secured.

Always be sure that any company offering car credit is regulated by the Financial Services Authority (FSA). The final agreement for car credit should always be in writing and signed by a representative of the finance company and the buyer. UK law states there is always a cooling off period for credit agreements during which an individual can decide not to go through with the loan without incurring penalties.

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You have searched the cars for sale in Auto Trader and you have spent many happy afternoons on the Carcraft car supermarket forecourt and you have finally decided upon your new car.  Now, how are you going to pay for it?  If you would prefer to spread the cost of your new car then you will need to arrange some car finance.

There are numerous different options when it comes to car finance, from a straightforward car loan from your bank or other lender, to hire purchase arranged through a dealer.  Regardless of your method of car finance you will need to shop around to get the cheapest deal.  Since the advent of the internet it is possible to use online car finance comparison websites to help you get the best deal. 

When arranging your car finance you will need the following information to hand:

•    The current value of the car you are buying.
•    The length of time for which you require the loan.
•    What monthly repayments can you afford?
•    How much deposit can you put down?
 
Things to Take into Account When Arranging Car Finance

It is worth noting that the longer the loan term the more interest you will pay, so make sure that the car finance deal you secure is right for you, taking into account the overall repayments.

If you are buying on hire purchase from a dealer make sure you negotiate for the car you are buying independently of any car finance agreement. 

If you are only planning on keeping your car for three years do not take out a five-year finance agreement or you will be paying for your car two years after it has been sold. 

Remember the car is the asset against which you are borrowing, therefore if you fail to make the necessary payments your car may be repossessed.

The value of your car will decrease whilst your loan repayments will stay the same.  This could lead to negative equity, so keep an eye on the current depreciation rate of the car you are buying.

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Any dealership with cars for sale will also want to make some extra cash on financing. It is worth remembering that the agent who handles financing for your new car will be working on commission so will want you to take as many extras as possible, and not all will particularly care if you need them or not. It is often the case that the finance and insurance department of any business that has cars for sale is more profitable than the sales department.

The rep you deal with, often called a business manager, sends your details to the lenders he deals with and then takes the lowest interest rate approved to you and marks it up, i.e. adds an amount that will be his profit on the deal.

The reps work in a high pressure environment and are expected to give customers a big sales pitch for add-ons. If you know very little about cars, or about financing for that matter, then this can be both confusing and intimidating. The loans they offer are often front-loaded, which means that interest rates are much higher at the beginning of the loan, making it less advantageous for you to pay the loan off early, should your future financial situation allow it.

For this reason, it is advisable to do a little research yourself first. Look for the best financing deals online that you can find and make a printout or take a note. This way you can show it to the rep at the dealership. Most dealers such as Carcraft, if they can, will match it there and then, allowing you to avoid a heavy sales pitch and simply take advantage of the convenient and fast service they offer.

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There are many car finance options on the market so it is advisable to work out the best option for you before you look at any cars. Two popular choices for car finance are hire purchase and personal contract purchase.

Hire Purchase (HP)
 
HP or lease purchasing is an easy and flexible option that requires only a low deposit.  Interest rates are fixed across the term of the lease so you will not have to worry should interest rates rise.  This is an ideal solution for those car owners who change their cars every three years.

Personal Contract Purchase (PCP)

PCP is also an easy option.  Like HP it too requires only a low deposit.  Unlike HP with a PCP loan you can agree to defer a large amount of the cost until the end of the loan term.  You then pay only the difference between the agreed loan and the deferred amount plus any interest.  At the end of the loan you have three options; pay the deferred amount in full and keep the car, return the car with no further payments, or trade in the car to offset the deferred amount to put the money towards a new PCP.

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If you are thinking of buying a new car, electric cars are one option to consider.  They are currently seen as the best option available for environmental considerations and the running costs can work out to be lower than with a conventional car. 

Many more manufacturers now offer electric cars than previously, and the range available is increasing every year.  As more electric cars are developed by large manufacturers, prices are correspondingly expected to fall.  A recharging infrastructure is in the process of being developed across the UK, making travelling longer distances more of a reality.

The government currently offers a subsidy of up to £5,000 in the form of a Plug-in Car Grant, to anyone purchasing selected new electric cars.  The grant paid will not be more than 25% of the value of the car.  There are presently ten cars approved by the government for the Plug-in Car Grant although only about five of those are available in 2011.  Most, if not all of the ten cars should be available in 2012.

Even with the grant, however, electric cars are still more expensive to purchase than petrol or diesel cars.  The cost of the battery is another factor.  If the battery is purchased outright, it can add up to 80% to the cost of the car.  The battery can alternatively be leased for a monthly fee.  

An internet search will bring up details of the various models of electric car currently available.  If you can afford the initial outlay and typically only use your car for local journeys, an electric car might be a consideration.

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Most people cannot afford brand new cars. For this reason there are many finance options available to buyers. Choosing the right option should not be rushed, as it could drastically affect your income for years to come. It is important that you consider all of the options available. This doesn’t necessarily mean choosing the cheapest deal; time also needs to be taken into account.

Facts to Consider

You should always remember your reasons for buying a new car. If it’s practicality that you’re after, then you may not be best served by spending money on the latest models. It is important to understand this before you enter a car dealership and begin the negotiation process.

Another very important thing to remember is your credit score. If you have the intention of buying a new car, but have a poor credit history then you could benefit from waiting until your score has improved. If you have poor credit then you may risk your chances of getting a favourable finance deal.

Forms of Loan

The two most common forms of car finance are the auto loan, and leasing. An auto loan will usually be arranged through a dealer, and can range from anything between 36 – 60 months. Obviously the longer the time period the less your monthly outgoings. Leasing is another option, and is more long term than an auto loan. It also means that you won’t actually own the car until it is completely paid for, and leasing can last for over ten years.

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You are ready to buy a new car.  They are quite expensive, however and most people, perhaps including you, do not have that kind of cash sitting in a biscuit jar on the kitchen table.  A loan will therefore be required if you are to buy the car you would like.

There are different types of loan available for you to choose from.  If you are buying the car for business use you could go for contract hire.  This option usually runs for a period of one to five years and you pay a fixed amount each month for the use of the vehicle.  Contract purchase is similar, except that you have the option to buy the car at the end of the contract for a specified amount that is agreed when the contract begins.

If you are purchasing the vehicle as an individual, other options are available.  A car finance lease is similar to a contract purchase in that you have a balloon payment at the end if you choose to keep the car.  You can then sell the vehicle if you decide to, as long as you are able to pay the amount due.

Finally, you can choose the personal contract option.  This way you can take out a contract to repay an agreed amount each month over specific period of time, usually between two and three years.  These contracts often have the cost of regular maintenance included in them.

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When you buy a new or used car, you need insurance.  Insurance protects you in the event of an accident or damages outside of your control.  Not all insurance companies and plans are created equal.  Consider insurance as a necessary part of car finance.

Compare Rates

When you choose the type of car you want, begin comparing rates at different insurance companies.  Review all companies, including online ones.  Determine rates on the exact same type of coverage for a more accurate comparison.

Choosing Coverage

Though you can choose the maximum coverage available, you are not required to.  You can choose the coverage amounts and types.  More coverage equals a higher premium, but less out of pocket expense for car repairs.  Necessary insurance coverage covers drivers in accidents caused by themselves.  Another popular type covers damage due to accidents not related to other drivers such as hitting an animal or a broken windscreen.  Choose only the coverage you want and need.

Discounts

Look for insurance companies that offer discounts for various situations.  Many offer no claims discounts, joining certain organisations can also result in discounts.  Another popular type of discount is choosing more than one insurance through the same company, such as insuring multiple cars or a home.

Reputation

Choose a reputable insurance company.  The length of time that company has been in business is a great indicator.  You can also consult reviews of the company or talk to friends and family.  This also gives you an idea of how quickly a company responds when needed.

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Many people think of private owners and dealerships when they think of used cars.  However, there are other sources of used cars, including car hire agencies.

Rental cars actually tend to make great used cars.  Often, the rental companies themselves will sell the cars.  Enterprise Rent-a-Car is one such company.  They put their rental cars up for sale at discounted prices.  They offer an easy process with no haggling.  They even buy back used cars that they have sold if the buyer changes their mind within seven days of purchasing the vehicle.

Whoever is selling it, rental cars are often a good option for used car buyers.  People looking for a second hand car should not overlook these vehicles. 

One advantage that comes from buying from rental car people is that they take good care of their vehicles.  The people who rent the cars may handle them roughly, so expect to see some bumps and scratches on the car; however, the rental car company itself will do its best to keep the car in excellent condition.  They want the vehicle to be able to run for as long as possible, so the maintenance and repairs they do to the car will keep it in excellent shape.

You also stand to get a good price from a rental car agency trying to sell off their used rental cars.  They got a good deal on the car to begin with and now, as they try to resell it as a used car, they will normally offer the vehicle at below book value.

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