People who buy cars through finance in Birmingham have dramatically increased in the last few years. Figures from the finance and leasing association show that the value of loans used to make car purchases in the UK doubled between 2011 and 2016, while finance deals are currently used in around eight in every ten cars.
One of the key factors for this is car finance in Birmingham has been using record low interest rates in the UK since the start of this decade. The base rate was held at 0.5% from March 2009 until August 2016 in the UK, and then it was cut even further to 0.25%.
To take advantage of lower rates, a number of businesses have started providing their own forms of finance and credit. Car dealerships and major motor manufacturer are doing this now. If you can’t afford to buy a car outright, car finance can be an option; this allows you to spread the cost over a longer period. If you decide to go for car finance you will have to have a good credit score.
There are various types of car finance in Birmingham that is available such as leasing and hire purchase, motorists will make monthly payments over a certain length of time, at the end of the term they will own the car. Also available for car finance in Birmingham are PCP (personal Contract Purchase) PCP is very similar to hire purchase as the customer makes monthly payments over a certain length of time, but they will have to pay an initial deposit, then at the end of the contract the customer can opt to make a final balloon payment to buy the car outright, or they can choose to roll over to another PCP on a new vehicle.
Things to bear in mind when taking out car finance in Birmingham: there may be limits on the annual permitted mileage; if these are exceeded extra charges can be incurred. If the customer was to damage the car or not keep to agreed maintenance schedules they can also be charged for this.
Most people tend to change their cars every three to four years. Especially if they have a car on finance as the contract will usually be coming to an end by then. The most common terms for having car finance in Birmingham is 72 months, followed by 60 months and then the slightly lesser terms.
The main reason you would go for car finance in Birmingham is so you do not have to purchase a car outright, as long as you are disciplined and have the monthly amount to pay out every month car finance is a great way to fund a car you may not normally be able to afford.
There are plenty of places that do car finance in Birmingham, ask at your local dealership for more information on the various finance options that are available.