Car Finance explained - A Knowledge base

Car finance can be a pretty damn confusing field. It can seem like a jungle of meaningless acronyms and abbreviations. Don’t worry though. I’m here to provide everyone who doesn’t know their HP from their BCH with a ray of hope. Here’s my guide to the main types of car finance, their benefits and their drawbacks!

Hire Purchase

Hire Purchase is a pretty old-fashioned form of car finance. It’s pretty much the standard type of finance that people turn to when it comes to getting their hands on a car. With hire purchase, you pay an initial deposit and then pay back regular monthly payments for a given period, until the complete value of the car has been paid off. Interest will also be added to the payments.

My good pal, Wikipedia, sums up Hire Purchase pretty well:

“An arrangement whereby a customer agrees to a contract to acquire an asset by paying an initial installment (e.g. 40% of the total) and repays the balance of the price of the asset plus interest over a period of time.”

This type of car finance is probably the most popular when it comes to offering a route to owning a car, even if you don’t have all the money upfront.

Pros

● Provides a fairly manageable process to eventually own a car

● Relatively easy to get approved for– provided you have a pretty good credit rating

● You’ll eventually become the legal owner of a car, to do what you want with

Cons

● Depreciation means that your car will probably be worth significantly less at the end of a HP agreement than it was when you first started paying for it.

● If you have a bad credit history, getting a HP agreement can be pretty difficult

● The finance company can repossess the car without a court order until you’ve paid a third of its value off

Personal Contract Purchase

This type of car finance is pretty much what would happen if hire purchase and personal contract hire were to have a baby. MoneysavingExpert.com, a pretty good, independent authority when it comes to finance matters, describes PCP as “..one of the more complex financial products available to help you buy a car, but it can be broken down into three main parts: 1. The deposit (usually around 10% of the car's price); 2. The amount your borrow; 3. The balloon payment (a balancing payment you pay IF you want to own the car).”

A cross between buying and leasing, this type of finance gives you the best of both worlds but it comes with a sting in the tail– the huge balloon payment you need to make at the end if you want to buy the car. This is notoriously big, so if you plan on buying the car at the end of the contract, you better start saving now.

Pros

● It combines the best parts of buying with the best parts of leasing

● It gives you the possibility of becoming an owner of a car

● Fixed monthly payments

Cons

● It can work out significantly more expensive than traditional types of leasing

● The balloon payment can be pretty hefty at the end of the agreement if you want to buy

● You’ll have to agree to a mileage restriction. If you go over this, you’ll be charged for each mile you exceed.

Personal Contract Hire

You’ve probably come across a personal contract hire in some form and you don’t even realise. Put simply, personal contract hire is the main type of leasing contract available in the UK. It’s a type of lease that’s aimed at people who use a car solely for their own, personal use – as opposed to business use.

Confused.com describe PCH says that: “PCH effectively involves renting a vehicle from a car finance company. With personal contract hire, you lease the car over the agreed contract period, and pay an initial deposit - normally the equivalent of three, six, nine, or 12 months worth of payments.”

A personal contract hire lease gives you the benefit of not having to worry about the crippling depreciation that affects all new cars, as well as giving you much lower monthly payments than if you were leasing.

It’s essentially because with a contract hire lease, you’re only paying off the value that the car is expected to lose whilst you’re leasing it – not the entire amount like you would with a hire purchase contract.

Pros

● Lower monthly repayments compared to hire purchase and other forms of car finance

● Fixed payments for the entire lease

● You won’t have to worry about how much the car might depreciate in value whilst you’ve got it.

Cons

● Expensive to get out of early

● If you don’t keep up on repayments your car can be repossessed

● You won’t actually be the owner of the car – just the registered keeper

Business Contract Hire

This type of leasing is essentially the same as personal contract hire, except for one seemingly small, but in reality, pretty big, difference – this type of contract hire is designed specifically for businesses! It’s available to any type of business in the UK– whether you’re a small sole trader or partnership, or a massive limited company.

Will Craig, CEO of LeaseFetcher, a car lease comparison site that lets you compare millions of leasing deals, told me: “You’ll often find that the majority of business contract hire agreements have slightly more competitive terms than personal contract hire agreements. This is because the BCH market tends to be more of a lucrative cash-cow for finance companies. For example, you’ll probably get a slightly lower monthly rate on a specific car on BHC than PCH– but we’re talking about savings in the tens of pounds, as opposed to savings in the hundreds or thousands.”

In its own right though, business contract hire, and leasing in general, has some major benefits for companies though – the major one being that with leasing, companies don’t need to expend any capital. The fact that monthly repayments are fixed means that businesses can also benefit from an improved cash flow.

Pros

● Your business won’t face the risk of losing money through depreciation, because you’ll never own the car

● You won’t have any capital expenditure

● Fixed, monthly payments improve the cash flow of your business

Cons

● You’ll still have to face those pesky mileage limits, as well as maintenance schedules

● Getting out of the contract early can be expensive

● You’ll need to get fully comprehensive insurance out on the car

About the Author: Tom Butcher is a freelance writer who recently escaped the world of print journalism. He covers a wide range of topics, including finance, business and motoring.

"Fender" Way To Buy Your Car: Your Options If You Can't Afford A Car Outright

We all know that, in the modern world, buying a car is pretty much a necessity for all of us. But going about buying one isn't easy. There are various options to consider, you can buy a car outright, you could lease a car, or you could scour the personal ads in the hope that something fantastic and cheap will arise. It's important for you to understand the best options, and what are these?

Using A Personal Loan

If your credit rating is good, you can get a decent loan from any bank or finance provider. The great thing about this is that you can spread the cost over many years, usually between 1 and 7. When picking a loan, it's always best to make sure that it's not secured against your home or other collateral. The great thing about a personal loan is that it's usually the cheapest alternative. The issue of a personal loan is that it could affect other borrowings, and there could be a wait for the funds to go into your bank account. So if you found a car you need to buy right away, such as an ex-demo model, this could be frustrating. However, some lenders put the funds into your account immediately.

Credit Card

If your credit rating is good enough, and you've got enough of a balance on your card, you can use your credit card to purchase the car. Some of the benefits of doing it this way include extra protection should something go wrong. This is on condition that you meet your monthly car payments. But, as with most credit cards, there will be a charge and can be up to 3%. Some dealers don't accept credit cards at all, which can be very annoying, so it's much better for you to ask at the outset if you have this intention.

Hire Purchase

A considerably popular way right now. Hire purchase is buying the car on finance. The loan is secured against the car itself, you then need to pay a deposit of approximately 10%, and then make monthly payments for the fixed amount. So the benefits in this are that you can shop around and get some really competitive interest rates, the deposit is low, and it can be done really quickly. The other benefit in this is that you are able to pick a higher spec of car, so if you are looking for a car like a Subaru XV or something that packs a bit more punch for your money, then it's more feasible than buying an old banger second hand. When negotiating this, it's better for you to go for a long-term agreements, up to 60 months is doable, but if you need a short-term agreement for personal reasons, this can be more expensive.

Personal Contract Purchase

A PCP is similar to hire purchase, but with the one notable difference that you make lower monthly payments. Beware with this, as the total amount of money you will pay is usually higher than hire purchase. And instead of getting a loan for the cost of the car, you will get a loan for the difference between the cost as it is at the outset and what the determined value will be at the end of the hire agreement. But, at the end of the payments, you can trade in the car, either for a newer model or something completely different, or hand the car back to the dealer. Your other option is to pay a larger final payment, which is known as a balloon payment, and keep the car outright. Beware of this as the general wear and tear of the car can incur extra fees. Also, if you exceed the determined mileage, this could put you out of pocket.

Peer To Peer Loans

This isn't something you hear about much when it comes to buying a new car. But peer-to-peer loans, allows people to borrow from other people, as opposed to banks or financial institutions. While on the surface this sounds ideal, you still need a good credit score to get a decent interest rate. And, much like a personal loan, if you miss any payments, your credit score will be affected. The best approach is to get your credit score as high as possible so you can negotiate the best interest rate for your money. But, it's advisable to do your research with this, and there's lots of information about peer to peer loans online. There are various websites to give you the information you need, such as this one, but it's important to keep your eye on the interest rates. Sometimes a personal loan will be a better option for you.

Cash Or Savings

Some people choose to save outright for the cost of their car, which can take a long time! Paying with cash is the cheapest way to get any car because you don't need to pay interest, or sign up for any financial agreement. If you do choose to go down this route, it's important to remember that you need more than the cost of your car, ideally 10% more. You need to make sure that there's enough left over in case an emergency arises. But if you don't have enough money to pay the car in full, you can still put down a big deposit, which means your monthly repayments will be lower if you choose to go down the higher purchase agreement route. Or, you can combine your savings, with a credit card payment, and then not only have you been able to pay for the car outright, if something goes wrong with the car, the credit card company is also equally liable with the retailer. This is a little bit more peace of mind!

A car is the second biggest purchase you will make in your entire life after a house. And as it's something you rely on as much as your house, you need to make sure that you get the best bang for your buck. Your financial options aren't always obvious, but these are what you can do if you are unable to afford your car outright.

5 Ways To Save on New Teen Drivers Car Insurance

Insuring a new driver can be a huge expense for parents and families, especially because you don’t have any leverage to prove that your teen is a good and safe driver. We know that you’re doing everything in your power to give your teen the tools to drive safely, so here are some ways that you can cut costs on insuring your new driver.

1. Have your teen take an accredited driving course

There are many courses that you can choose to enroll your teen in to make sure that your insurance premium for your teen stays low. Make sure that you are signing your child up for an accredited course. Not only is this kind of driving course extremely beneficial because it will help your teen learn the basics of driving, it could save you a lot in car insurance costs over a three year period.

2. Insure your teen as an occasional driver

When you’re purchasing insurance for your teen, bundling car insurance policies or including your teen as an occasional driver could save you a lot on your car insurance. If you are planning on getting your teen a car once they get their license, make sure that you check the make and model for insurance and deductible costs.

3. Put restrictions on when your teen can drive

Driving in the winter, or driving at night are opportunities for accidents, regardless of your car insurance coverage. For the first few weeks, don’t allow your new driver to drive at night or in extremely poor weather conditions like rain or snow. Having a good driving track record is super important when a driver is new, and even the smallest accident could have your insurance premiums shooting through the roof.

4. Research insurance rates for make, model, and year of your car

If you’re thinking about getting your new driver a brand new car as a gift for receiving their license, be sure to do your research. If the make or model of the car you are choosing to insure is expensive, your premium will go up, and so will your deductible. Take a look at which cars are cheapest to insure, but are also safe to drive. It may be worthwhile to go for function over style when it comes to your teens first car.

5. Try usage based car insurance

One of the main reasons why new drivers car insurance rates are so high is because new drivers don’t have any sort of driving record. Insurance companies have to rely heavily on risk statistics to determine what to charge for your car insurance. Usage based car insurance monitors your driving habits over a trial period, and your insurance premium is adjusted accordingly. This is a great motivator for your young driver to drive safely, and you could save up to 25% on your car insurance depending on what car insurance provider you use.

Driving for the first time is a new and exciting experience! With the right tools, your teen will hit the road with the confidence and knowledge to stay safe, and you’ll have the best available car insurance for your unique situation.

You Can't Possibly Afford A Video Game Care In Real Life... Or Can You?

This year saw the return of the Gran Turismo game series after a long, four year hiatus. Now, if you are anything like us, then your love of cars probably comes from the deep-rooted obsession you had with the first Gran Turismo game, which came out way back when the PlayStation One was fresh on the shelves. Sure, the graphics weren’t great and the unavoidable scratches made certain tracks unplayable, but that is irrelevant; this was a game that was more realistic than looking out of your bedroom.

That’s what makes this franchise so special. It’s the fact there are over a thousand real-life and licensed cars to be enjoyed. It offers the Average Joe and Johanna the chance to test drive the latest from Lamborghini and Bugatti, as well as some of the hybrid supers that have been made by the Mercedes SLS team. Essentially, Gran Turismo is your chance to leap into the cockpit of every dream car that is impossibly out of reach for almost everyone because they cost more than your kidney, lungs and brain re worth on the Black Market.

However, they aren’t all out of reach. That’s right, there is a slew of cars that offer plenty of fun that are - possibly - within the grasp of your budget when you know how to finance them, and they’re the ones we are going to focus on. So, without further ado, head onto Google, buy a slogan t-shirt that reads “I can afford a car that’s in Gran Turismo” and then pull up outside your mates house because these cars are packed full of vroom-vroom.

Subaru WRX

The Mitsubishi Evo or Subaru Impreza was a decision that divided friendships quicker than the Marmite argument but, in reality, there is no competition. The Subaru WRX just casts a spell over all those that catch a glimpse of it. It is a car that stirs up something deep inside of us, and the latest release - the fourth generation - will blow your socks off. It has taken its twenty-year pedigree and showed us what we have always loved about it. The turbocharged engine, that infamous silhouette and the handling that made this car a world rally champion so many times. However, what makes the latest release so special is the modern touches. It’s the highly sophisticated infotainment system, the luxury comforts, breathtakingly stylish cockpit and the state of the art tech. Here is the real kicker, though, there are Subaru finance schemes available to make your dream a reality. This car used to be for those that wanted to leave other cars choking on dust. But now, this car is for those that want to leave other cars in the dust while enjoying the comforts of a car that can be driven every day.

Mazda RX-7

Now this car may have stopped coming off the production line fifteen years ago, but it remains a hero that is still worth getting your hands on. It isn’t just the fact this car was a drifting-superstar in the game, it is the fact it is a crisp, clean and simple car that manages to turn heads no matter where it is driven. That shape is about as iconic as a Christmas tree, with the pop-up lights and smallish wheels only adding to its allure. In terms of which model you should get your hands on, the third generation is by far our favourite; the FD. Twin-turbocharged engine with a twin-rotor powertrain this thing packed a punch, even if it is just a 1.3L. It did 0-62 in five seconds flat and hit highs of 156 mph. That is staggering. Sure there are flaws, like the non-adjustable steering wheel and the fact it lacks a little headroom, but by using these classic car loan tips, you’ll find out this is still a glorious car that will make you smile from ear to ear.

Chrysler 300C

The statement this car made was something special, and it still has that in its arsenal. It is the chance to feel like a Mafia Don as you ride around town. Yes, this statement costs a premium. However, you get plenty of other things for your money too, starting with the performance, running through the luxury and ending at the ambience. Rear-wheel drive automatics have fallen out of favour in recent years, but the 500C is proof of what is possible. The obvious flaw - as anyone who has ever stepped inside or seen one of these up close will attest - is the build quality. Our favourite shape is the 2005 to 2011, but we can’t deny our love for the new models - especially the 2017 edition. This is our favourite to own and buying second hand is our top tip when it comes to affording one. The reason it is our fave is simple: it is still unapologetically bold, but it is also super well-equipped with modern tech, as comfortable as anything else out there and surprisingly quiet too. It is practical and it boasts a V8 option; now that is cool.

Subaru Legacy

Yeah, our first port of call has competition from within its own ranks because the Subaru Legacy is another option that cannot be ignored. It may not have the yeehaw appeal of the WRX, but it certainly a great option for a family that has to live with the muck and yuck of everyday life. What makes the 2017 model so delightful is the added style it has been given. Yes, it has been given a sporty trim both on the outside and in. The result: it deserves a second glance when you are window shopping, maybe even a third glance. What really sets this apart from its competitors, however, is its all-weather driving capabilities. Some of you are probably reading this from a geographical location where the weather is a big factor in life and having a car to meet those demands is crucial. Oh, and it has a much better fuel efficiency rating than its competitors. Now we know that is a wholly un-Gran-Turismo thing to say but, in real life, that is an important factor (probably more important than how well it drifts).

And there we have it, three manufacturers and four cars that are well worth considering in real life the next time you are thinking about an upgrade. Come on, just imagine how happy the kid inside you will be if you get to see one of these sat on your driveway each morning.

How Do Car Insurance Companies Come Up With Their Quotes?

You go onto a car insurance website, you put all of your details in, and it comes back with a price. Most of us just find the cheapest one and pay it, but we rarely stop to question how that price is actually calculated. Knowing how the price is worked out in the first place can help you to make changes that will reduce the cost of your car insurance. So, how exactly do they work out that price?

Age

Your age is one of the biggest factors that affect the price. Younger drivers between the age of 17 and 25 are going to be subject to far higher prices than people over 25. Unfortunately, there’s nothing you can really do about it. It’s a common misconception that as soon as you hit 25, your prices will plummet immediately. In a lot of cases, they do drop drastically but that’s not always the way so don’t be counting on that. 

Your Job

You wouldn’t think it would make that much difference to your personal insurance but your job description dictates how much time you spend on the road so the insurance companies will take it into account. If you’ve got a higher paying job then you’ll probably get a higher quote. If you can rephrase it so it sounds less senior than it is, you could cut your costs. It’s also a good idea to use sites like cheapautoinsurance.co to check lots of different providers because different companies will charge their own prices for certain job descriptions. Try different job descriptions with different companies to find the cheapest deal possible. 

Your Car

Obviously, your car is going to be one of the biggest factors in the price of your insurance. The cash value of the car is the first thing that they look at. The more expensive the car was to buy, the more expensive it will be to insure. If the car is rare it’ll be more difficult to get parts to repair it which will jack up the costs of insurance as well. The power of the car is something you need to consider carefully as well. The more powerful the engine, the more likely you are to get into an expensive accident so that’ll increase your price as well. The popularity of the car isn’t something that people always think about but it makes a big difference. If your car is very popular, the insurance company will be more worried about the risk of theft so they’ll charge you more money.

Where You Live

The location of your house is also a big indicator of how likely you are to claim on the insurance. In a built up area, you’re more likely to get into an accident. Equally, if you live in an area that has a high level of crime, your insurance bill is going to be massive. The price can change drastically in the space of a few streets so even if you live on a relatively safe road, you might still be paying over the odds if you live near a dangerous area. 

Now that you know exactly how insurers come up with their prices, you can take steps to reduce them.

The Frugal Approach to Owning a Vehicle

Many of us long to own a vehicle but dread the prices. We first need to think about a loan or financing options, then it’s on to insurance payments and maybe even road tax. What comes next? Parking fees, maintenance, repairs… the list goes on! However, there is a frugal way to approach owning a vehicle and it consists of many small steps. If you want to own a vehicle but you’re worried about the amount of money you’re paying, then a couple of these tips could perhaps change your mind and help you lower the costs of owning a car.

Look for budget cars

A budget car doesn’t mean something that just costs less. A budget car is something that is readily available as both new and pre-owned, has low repair costs, low insurance fees, low emissions which result in lower road tax, and also great fuel efficiency. All of these features add up together to become a budget car that is not only cheap to run, but also comes with a low price tag. Not every car is born even and there are some vehicles that have excellent fuel efficiency at a low price, and other cars that are even cheaper but don’t offer a good deal on everything else.

Request a loan

Loans are seen as an evil in our lives but they really aren’t that bad. Loans are designed to give us money during an emergency or a period of time when we need a little boost, and if owning a vehicle is a priority then taking out a loan is the preferred way to do it. As long as you can repay it, then you should be fine taking out a loan. Keep in mind that your credit rating will affect your chances, so you can find out how to get a car loan with bad credit before you decide to pick this option. Just remember that you eventually have to pay it back, so don’t take out a loan if you aren’t financially stable.

Lower insurance costs

There are many tricks that will enable you to lower your insurance costs. For starters, if you have a garage then clear it out and use it as a way to store your vehicle instead of keeping it parked outside. Security is a huge concern for insurance companies and the safer your car is, the less likely you are to pay extra for insurance. You can also reduce insurance costs by simply driving less. It sounds counterintuitive to drive less, but keep in mind that you’ve got a higher chance of getting into an accident if you drive for longer periods of time and insurance companies keep that in mind.

Second-hand dealerships

If all you need is a vehicle to carry you from point A to B, then there’s nothing wrong with having a cheap car that you bought from a second-hand dealership. Most pre-owned vehicles are refurbished to a working standard and also come with a lot of additional support. You can get some fantastic prices on cars that are close to being scrapped, and although they may not be the prettiest thing to look at, they definitely work.

Curbing Your Car’s Running Costs

Owning a car is expensive, but there are all kinds of ways to keep these ownership costs down. Here are just a few ways that you can fix up your road vehicle expenses.

Fix bad driving habits

This is the main area where many of us rack up costs. Being heavy footed on the brakes and accelerator can have all kinds of costly altercations. This type of racer-like driving uses up much more fuel, meaning more frequent visits to the gas station. It can also develop wear and tear on brake discs and pedals – meaning a possible trip to the mechanics later down the line that could be avoided.

Most modern cars will have in-built settings to help you drive more economically such as telling you when to change gear and when to ease up on the revs. There are other things to look out for such as tyres deflation and carrying extra unnecessary weight such as roofbox or work equipment when not working. All this will cause you to use up more fuel than is necessary.

Use apps

There are many driving apps out there that can help you save money. Apps such as GasBuddy can help you find the cheapest nearby petrol station. This is particularly useful when driving somewhere unfamiliar, helping you to avoid expensive motorway station charges.

There are also apps out there that can help you find the cheapest route, avoiding tolls. Other apps meanwhile can help you keep on top of car maintenance, telling you which fuel is best for your vehicles and when you should expect to get parts and inspected and repaired.

Install eco-driving and anti-theft features

Various features can be installed on your car that can save costs in the long run. Eco-driving gadgets are becoming more popular. For older cars that may not have modern in-built eco-driving pointers, you can buy devices to help notify you when best to change gear and when to ease off the gas. Eco-pedals meanwhile can be fitted offering resistance when you accelerate, preventing you from hitting the gas too hard. Another eco-friendly gadgets is a solar car battery charger. For those cold winters in which the battery can become damage through lack of use and freezing temperature, this solar-powered charger keep your battery constantly powered up.

Anti-theft features meanwhile such as steering wheel locks and wheel clamps can lower your car insurance. Storing your car in garage can also reduce your rates.

Catch faults early

Ignoring a chip in the windscreen or a clunking noise below the bonnet could have costly repercussions later down the line. This can be especially the case with moving parts – one worn part may have knock on effect on the wear and tear of other parts and before long half your engine needs to be replaced. Annual services from a reputable mechanic can prevent most of these faults, however if a problem arises in the meantime, don’t simply wait it out until your next service – get it checked there and then to avoid it snowballing into something bigger and more expensive.

Don’t always make an insurance claim

Making a claim can up your insurance rates for the next year as you immediately become a financial threat to the insurers. You should certainly use you insurance companies to pay for more costly repairs, but for those that you can reasonably afford, you may be better off for pay for them out of your own pocket.

There are also other forms of making claims that can earn you money for repairs. If you were in a car accident and got injured there’s always the chance that you may be able to make an injury claim. There are specialist firms across the country such as Personal Injury Lawyers from The Brown Firm that can deal with this kind of claim. In some cases, you may also be able to sue an insurance company that it is unjustly refusing to pay out.

Raise your deductibles

There are many extreme measures for lowering car insurance rates such as taking an advanced driving course or using a black box, but if you’re looking for a more simple way to reduce your premiums, why not simply raise your deductible costs? These costs are payment that you would personally be willing to pay out of your own pocket before insurers get involved. Raising these deductible costs can greatly reduce your rates – just make sure you truly do have the money to contribute to such repairs if you have an accident.

Beating The Salesmen When You Buy A Car

Talking to someone who wants to sell you something can be very difficult. You know that they will say whatever they can to make a sale. And, this may involve not being entirely truthful with you. But, like most things sales is just a game. And, if you know how to play it, it gets much easier to control these sorts of situations. Which is exactly what needs to be done if you want to save money on your next car. To help you out, this post will be helping you to beat the salesmen. And, get a better deal on your next car.

Salesmen will use a host of different tactics to get their job done. But, ultimately, they will usually be willing to settle on less if it gets them a sale. Most customers won’t question the first price that they are given for an item. But, with something as large as a car; it’s alright to make an offer or ask for some reductions. The very first place to look is the car itself. If it has any imperfections which haven’t been disclosed or it has something wrong with it; you can try to get a lower price. But, you need to do more.

One of the best ways to get a good price on a car is to simply wait. The salesmen will be unwilling to go low straight away. Instead, they will be trying to get as much out of you as possible. But, the longer they have to wait; the more eager they will be to get rid of the car. Going to other garages and seeing other cars is a great way to make a salesmen lower their prices. It can also help if you talk about other deals that you’ve seen at local garages. But, only do this if you’ve actually seen a deal; the salesmen will know what other garages have.

In most places, sales staff are required to tell customers about any deals that hey have running. But, only if the customer actually asks for the information. If you are trying to buy a car, you should always ask about any promotions that are running. Doing this will give you a chance to hear about money you could save on the current car of interest. And, it may open up other options to you as well. Most garages will always have some sort of deal on. These deals can save you a large amount of the car’s value. So, they’re worth pursuing.

Once you know which car you want to buy, you can seal the deal. Usually, you will have to pay for the car before you can take it away. But, if you can’t do this, most garages will have their own system for no deposit car finance. This will allow you to drive the car away on the same day that you buy it. And, will negate the need to save money.

Hopefully, this will give you the inspiration you need to save some money on your next car. It can be hard to see through the tactics that salesmen use. But, it’s worth it. These sorts of methods can save you a lot of money. And, you’ll probably even be able to get a better car out of it.

Yes, You Can Afford A Jaguar - Here's How

We’ve all driven past the Jaguar dealership with envy in our eyes. We love the subtle curves and the fierce engine that lies underneath. We love the idea of parking a new Jaguar in the driveway, and taking it out on the coastal roads at the weekend. For most of us, this seems a little out of reach. The sticker price alone is enough to make your wallet recoil in horror! It doesn’t have to be that way. You can afford a Jag if you put your mind to it. We’ve done our research and the sums; let us show you how you can pay for that stunning car.

•  Buy second hand - Your first option is to glance towards the second-hand market. The prices of a brand new Jag are often astronomical. But, there are plenty of bargains to be found if you find a used model. Jaguars are luxury cars, and luxury cars tend to depreciate fast. That means you could pick up a two or three-year-old model at half the price of a new one. Seek out the used cars and you’ll find the prices are often within budget. Be sure to factor in the cost of repairs and maintenance too.

•  Get a large deposit together - We understand that it’s not always possible to lay down the full amount for a car. Instead, you’ll probably pay a deposit and monthly repayments. Our advice here is to scrape together the biggest possible deposit. That way, you’ll lower the monthly burden and ultimately pay far less interest on the loan. By doing this, you’ll keep your family finances in better health.

•  Finance options - No car is out of reach when you find a good finance plan! It’s well worth speaking to your dealer about available Jaguar finance options. There are all sorts of deals on offer, even if you don’t have a high credit score. The two main options are the hire purchase and the personal contract plan. Both work in a similar way; you’ll pay a deposit, followed by regular payments. It can work out very cost-effective. Just read the small print, and ensure you can afford the monthly costs.

•  Bank loan - Sometimes, you’ll have more luck turning to your current bank. They can quickly guarantee you a loan that won’t be held against the car itself. You’ll probably strike a slightly better interest rate too, but that’s not always the case. Make sure the loan isn’t secured against your home, as this could place your family under strain.

•  Leasing - Finally, you could take an entirely different approach and lease the car. Leasing is more like a long-term car hire. You’ll still pay your deposit and monthly payments. But, they’ll be much cheaper. At the end of a three-year period, you’ll simply hand the keys back and you’re free to move on. Many drivers prefer this option, though remember that you’ll never own the car yourself.

 As you can see, folks, there are plenty of ways to pay for that Jaguar you love so much. Speak to your dealer and your bank, and find a deal that works for you!

Can't Afford Your Car Repairs? Read This Fantastic Advice

Everybody knows that maintaining a vehicle is expensive. In fact, if you knew how much you spent on your car every year, it would shock you. When you have an accident or your break down unexpectedly, though, you might not have the cash to fix the issue. If your car is your main source of travel, you need to do something fast. Working out the best course of action is the only way to go. Whether you believe it or not, you do have options, and you should not ignore them. Read this fantastic advice to help you afford your car repairs.

Check your insurance policy

Of course, everybody has car insurance. You need to check to see whether your policy covers you for road accidents and breakdowns. A lot of the time, you will need to pay the excess on your car insurance policy. That means that you will have to pay a predetermined amount of money to your insurers. Sometimes, that amount will also be more than you can afford. If you have trouble paying the excess, you need to look into other options.

Get a short term loan

If you know that you will have the money soon, a short term loan could be useful. You should not use loans as a way to get free money. Remember, you will need to pay interest on your loan amount, and so you need to weigh up whether it will be worthwhile. You should ask the loan company about the interest rate and work out how much you will pay for your loan, in the long term. If it costs you too much money, you need to think of an alternative. Some companies reward you for paying back your loan fast, and so you should keep that in mind.

Consider filing a claim

If you had a road accident, you might be due some compensation money. You should talk to a lawyer from a company, such as Avrek Law Firm. They will tell you whether you have the right to claim some compensation money back from the other driver. You should look for a company that works for free until you get your money. That way, you don't have to worry about expensive legal fees until you win your case.

Ask your mechanic about payment schemes

If you want to pay in installments, your mechanic might allow you to do so. Some garages have loyalty schemes that could help you spread the cost of your repairs. Not everybody has the cash for emergencies. Your mechanic knows this fact, and so they have payment plans to help you out. Don't be shy about talking to an expert about your financial situation. So long as you can show them that you have the means to pay them later, they should have no issue with offering you a deal. If you can find someone who will help you out, you will find it is easy to afford the payments.

Talk to your auto manufacturers

If the problem with your vehicle is internal, you might find that the fault lies with your manufacturers. Sometimes, there are existing problems with cars when you buy them. That means that the issue with your system might not be down to anything you have done. You can contact your manufacturer directly and ask them about the fault. If your car is under warranty, they might replace the parts for you or even offer you some free services.

The most important thing to focus on right now is getting your vehicle back on the road. Think about these options and see whether any apply to you. Before you know it, your car will be working once again!

5 Terrible And Costly Mistakes To Avoid With Car Rentals

When you are thinking about renting a car for your vacation or business trip, the first logical step implies browsing through the online listings of the companies servicing the area and selecting what you consider to be the most appropriate one. The criteria that enable you to dissociate between the available agencies include rates, fleet options, reputation, potential discounts, the inclusion of additional services, so on and so forth.

Basically, you choose the company with what appears to be the most agreeable "terms and conditions", sign the contract and leave their parking lot at the wheel of your new rental. The headache starts only when you return the car, as you notice there are several other unexpected fees that you need to pay. Let's review the top 5.

1. Early return fees

As the cautious and responsible customer that you are, you will of course do your best to avoid the late taxes which, let's be honest, are quite substantial nowadays. In order to do so, you might consider that taking the rental automobile back to the lot of the agency a day earlier constitutes the best option or even that you may get a discount. Wrong. Most rental companies will not compensate you for your punctuality, but will actually apply additional fees or increase the rates. For example, if the rates are lower when you rent the automobile for 7+ days and you bring it back on the 6th day, you lose the discount.

2. Location surcharges

Certain key locations where the rental vehicles are always in high demand – think airports, for instance – are often a great deal more expensive than the agencies in the downtown area. You can avoid paying extra without the inconvenience of taking public transportation to town by confirming the rental ahead of time and requesting that the car be there when you arrive. By using an online comparison service such as Compare Car Rentals, you can see the difference in price between rental companies near an airport and those situated further away.

3. Preexisting damage costs 

he biggest mistake you could possibly make is to rely exclusively on the goodwill and honesty of the rental agency representatives when it comes to preexisting damage. If your rental car presents dents, scratches, cigarette burns, etc. and you do not document them with dated pictures before you drive off, chances are you will be asked to pay for the damage. Never assume that your word will weigh heavier in court, should it come to that.

4. Taxes that were not included in the advertised rates

What you see on the websites that promote incredibly low rates is generally not the amount that adds up when you count taxes and other fees. Those rates are mainly there to sway the customers and if you look closely at the fine print, you will notice that they do not include all the fees. Bottom line is that you should always ensure you know how much you have to pay before putting your signature on the contract.

5. Overlapping insurance charges

In numerous cases, the insurance policy of your personal car and/or the credit card company has the rental covered. However, the job description of the rental agency representative clearly states that he should do his best to persuade you to purchase the most comprehensive insurance package, whether or not it overlaps your policy's coverage. Again, check this aspect beforehand in order to avoid signing under pressure. Be wise, folks! The Guardian Website has an entire section dedicated to credit cards and learning about the latest news surrounding them and what your provider should and should not cover as standard - click through to visit the site.

A Look At 10 Situations Where Your Insurance May Not Cover The Rental

You may have a clear idea regarding the extent and limitations of the coverage in your current insurance policy when it comes to your personal car, but these stipulations don't always apply for rentals. The situation is the same for the coverage provided by your credit card; that is typically the reason why it is so easy for rental agencies to "bully" clients into purchasing the most expensive insurance available. The problem is that even that contract has several exclusions and loopholes…

Therefore, you could very well end up spending a lot of cash in vain as you will still be requested to account for the damages/liability from your own pocket. Let's elaborate.

1. Covered, but only for a limited period of time

For instance, if you are relying on the coverage provided by your Visa card, then you should be aware you only have this safety net for a maximum of 15 days for the United States and 30 days for external rentals. Check for any mention of a time limit in your contract.

2. International exceptions to the coverage

Israel, Australia, Ireland, Italy, Jamaica and New Zealand are only a few examples of countries where the credit card's protection for the rental is voided. Verify your contract to determine other potential exclusions. If you visit eRentals online, you can check out rates for the above listed countries before you decide on a final travel destination.

3. Unauthorized driver

In the event that the person driving the car when the collision occurs is not listed among the authorized drivers, the collision waiver is null. Ask the rental agency to include all potential drivers of the rental in the contract before signing.

4. Categories of cars

Visa card owners should be aware that pickups, sports vehicles or vans do not benefit from coverage, whereas American Express has listed SUVs in the category of exclusions.

5. Road exclusions

Typically mentioned in the fine print section, most rental insurance policies are immediately voided if the car is driven off-road. Therefore, if you want to hire the car to go on a fishing trip for example, make sure that this exclusion is not in the contract.

6. Contract violations

Also part of the fine print, conditions regarding the usage of the car like commercial applications or DUI could nullify the insurance.

7. Traffic violations

It is estimated that on average every driver will – deliberately or unintentionally – break a traffic law at least once every day. If you get caught and your traffic violation results in damage to the rental car, the coverage is voided.

8. Stolen vehicles 

You are always held accountable for the theft when your rental car is stolen because you left the keys in the ignition or on the dashboard, in plain sight.

9. Loss of use

A controversial clause, the loss of use is essentially an exception to the coverage and it implies that you have to reimburse the agency for the profits lost while the car is being repaired/replaced.

10. Improper method of payment

In numerous cases, the credit card insurance will only apply IF you pay the full amount for the rental vehicle, which means that utilizing a coupon or the points to obtain a discount could leave you unprotected in case of an accident.