Car financing for Newbies - The Hire Purchase Agreement

Let’s find out more about the Hire Purchase Agreement for financing your new car.

How it works - The lender buys the car and lets you “hire” it from them. But with the added benefit of ownership once you have made sufficient payments to the lender. You can adjust the payment terms according to your preferred tenure and work with the lender to find a monthly instalment amount that meets your needs.

Pros - Since the lender owns the car until you’ve paid up, they are much more willing to give you better interest rates and accept the agreement at a lower deposit amount. Sales tax and VAT can be waived and can benefit businesses in terms of managing their cash flow. Ownership is also granted at the end of the term.

Cons - If you default on payments or break contract anywhere in between, you lose the right to own even a portion of the car despite how many payments you’ve made.

Car financing for Newbies - The Hire Purchase Agreement

Find out more about the Hire Purchase Agreement with The Smarter Finance Company!

How to handle late car payments

If you foresee that you might miss your car payment, take these steps to ensure that things don’t end in disaster or repossession!

Step 1 - Tell your lender

Your lender is likely to be lenient and help you to work things out so that they don’t lose their investment in you!

Step 2 - Find a solution

Work together with your lender to figure out how best to settle the issue of non repayment in a way that works best for both parties.

Step 3 - Make restitution

Once you’ve got a solution, get it done and executed! The faster action is taken, the faster the problem goes away!

Worst case Scenario - sell the car!

If you can’t find funds anywhere else, selling the car is the best way to bring the issue back to square 1.

Don’t worry too much if you miss your payments. As long as you are genuine and committed to rectifying the situation, things will work out in a matter of time.

How to handle late car payments

How to Get a Great Car Financing Loan

Here’s how you and your financial institution can work out a better car financing deal for you when you are looking at a new or used car!

Calculate your down payments

A larger deposit means less money to pay off later - that results in smaller monthly payments!

Get quotes from everywhere!

Different lenders have different rates, sometimes simple comparisons can help pinpoint a great deal!

Compare loan periods

The longer your financing plan, the higher the interest rate may be but that means the costs are more spread out over time. A balance must be worked out.

Overall Costs matter

The longer your loan tenure, the more interest you pay! Find a contrast that suits you and your budget so that you don’t pay too much out of your initial costs.

Looking at a number of different options can be made simpler if you work with a reputable car financing specialist like The Smarter Financing Company! 

How to Get a Great Car Financing Loan

Should I Lease or Purchase my Car?

Getting a car financing plan for a car brings up a big question - to lease or to buy? The Smarter Finance Company outlines some points on both options for you.

Leasing a Car

Renting a car from someone means that you are obligated to upkeep the car to the owners preferences and that can put some restrictions on how you use the car. But while there are areas that you can’t negotiate, leasing a car also gives you a certain degree of freedom - possibly lower  monthly payments, the chance to switch cars and a smaller overall debt!

Buying a Car

The obvious benefit to buying a car is that it’s yours to do with however you like! Unfortunately, not everyone has that kind of moola in the bank to just go out there and buy a car. A good car financing plan would help you out with that of course but with that comes its own pros and cons for each different plan...

Let your heart be your guide. You know best what you’d like and how you can best manage your commitments. When in doubt, check with a professional car financing company like The Smarter Finance Company and ask for help to weight your options.

Should I Lease or Purchase my Car?