Navigating car finance can seem hard. But finding the best
car finance deals in 2024 can be easy. If you’re searching for low monthly payments
or a flexible personal contract purchase (PCP) plan, these 10 tips will help you get the right
deal for your personal circumstances.
1. Understand the
Types of Car Finance Available
Before you start a finance agreement, it’s important to understand your choices. Here are some common types
of finance:
Personal Contract Purchase (PCP): You can have low monthly payments.
There is an optional final payment if you want to own the car.
Hire Purchase (HP): You pay higher monthly costs, but you will own the car at the
end of the agreement.
Personal Loan: You can borrow the whole loan amount and then pay it
back in instalments. Usually, it has lower APR finance rates.
Knowing these choices helps you choose what works best for your financial circumstances.
2. Improve Your Credit
Score Before Applying
Your credit score is very important for getting good car finance deals. A higher score can help you
get better annual percentage rate (APR) offers and easier terms.
How to Improve Your Credit
Score:
Look at your credit history for mistakes.
Clear your debts, such as credit cards.
Don’t apply for several credits within a short time.
3. Save for a Larger Deposit
A larger first deposit or a higher minimum deposit means you will borrow less money. This results in smaller
monthly
payments and less interest
to pay in total.
Tip:
Think about saving for a larger deposit if you can. It can really help lower your repayment amount.
Different finance companies and lenders have different APR finance rates. A small change in the interest rate
can save you a lot of money over the time of your loan.
Use a Finance Calculator:
Online calculators can help you figure out your repayments. They will show you the total costs based on the
loan amount, interest, and term.
5. Look for Deposit
Contributions
Some car dealerships and manufacturers give money to help buyers. This money is called deposit contributions.
It helps lower the initial deposit you need to pay.
Example:
Brands like Suzuki, MG, and Skoda often have offers that provide a lot of help with deposits. This is
especially true for their new models.
6. Tailor Your
Finance to Your Personal Circumstances
When you pick a finance agreement, make sure the terms match your money goals.
Key Factors to Consider:
Your monthly budget.
Expected repayments during the term.
If you want to own the car fully (HP) or have more options at the end (PCP).
7. Choose the Right Car to
Finance
Some cars are cheaper to finance than other cars.
For example:
Nissan Leaf: Provides good finance deals for buyers who care about the
environment.
Tesla Model Y: A favoured option for people looking for top EV
financing.
Suzuki Swift: Great for buyers who want low monthly payments.
Look for specific models.
Find the best balance.
Focus on affordability and features.
8. Ensure the Lender Is
FCA-Approved
Choose a finance company that is approved by the Financial Conduct Authority (FCA) to keep your interests
safe. FCA-approved lenders must follow strict rules. This ensures that their finance agreements are clear
and fair.
9. Consider Loan Term Length
The length of your loan affects your repayments:
Shorter Term: You will have higher monthly payments, but you will pay
less in total interest.
Longer Term: You will have lower monthly payments, but you will pay
more in total interest.
Look at your financial circumstances. Think about what is best for you.
10. Use a Comparison
Service to Find the Best Deal
Comparison services help you save time and money. They show several car finance deals
next to each other.
Benefits of Using a
Comparison Service:
Look at APR, loan terms, and deposit contributions.
Get special offers from dealerships and lenders.
Customise results for your needs, like low monthly payments or short loan terms.
Start
comparing today. You can find the best car finance deals in 2024 that are right for you!
FAQs About Car Finance Deals in 2024
What is the difference between PCP and HP agreements?
PCP lets you have lower monthly payments. It also has an optional final payment if you want to
own the car. On the other hand, HP needs you to make higher payments. However, it makes sure you
own the car at the end of the agreement.
How does a credit score affect car finance?
A good credit score can help you get lower interest rates and better deals. It is important to
check your credit history. You should work to improve it before you apply.
Are there finance deals with no deposit?
Yes, some lenders do provide no deposit deals. However, these often come with higher APR finance
rates or bigger monthly repayments.
How can I calculate my car finance repayments?
Use a finance calculator to figure out monthly payments, interest costs, and the total loan
amount. You can do this by entering your personal circumstances.
Which cars are best for affordable finance deals?
Models such as the Nissan Leaf, Tesla Model Y, Suzuki Swift, and Polestar usually offer good
financing plans. These plans have low monthly payments.
We use cookies to provide the best possible user experience and maintain a secure environment. Some cookies are essential for the proper functioning and security of our website, enabling core features like processing your comparison queries and accessing your rewards. We also employ optional cookies for advanced analytics, tracking, advertising, testing, and performance optimisation.
By clicking 'Accept All', you consent to our use of all cookies. If you click 'Reject All', we will only use the necessary cookies required for the site to function securely. For more control over your cookie preferences, click 'Let Me Choose' to customise which optional cookies you're comfortable with. To learn more about the specific types of cookies we use, please visit our comprehensive
Cookie Policy.
Manage your cookies preferences.
Please select and accept your cookie preferences:
These essential cookies ensure the proper functioning and security of the website and app. They enable core features and services without collecting personal information for tracking or advertising purposes.
These cookies provide insights into how customers interact with our website and app. The aggregated and anonymous data collected helps us understand the usage of our products and services, enabling us to identify areas for improvement and optimise your browsing experience.
These cookies help us present products, services and offers that are most relevant to you. We may use the data collected by these cookies to personalise the advertisements you see on our website and other platforms, ensuring a more tailored browsing experience.
These cookies allow our website and app to remember your preferences, such as your region, country, language, accessibility options, and other settings. By enabling these cookies, we can provide you with a more personalised and convenient browsing experience tailored to your specific needs.
These cookies are used when we advertise on social media platforms. They allow these platforms to recognise you as one of our users and display relevant ads to you on our behalf. When you use your social media account to log in to our services, these cookies may also be used by the platforms to collect information about your behaviour for personalised advertising purposes.
