Car finance in Birmingham

We have put together everything you need to know to secure the best car finance in Birmingham, and can guide you through all aspects of car finance from start to finish, ensuring that you get the best deal available.

Whether you are looking to purchase your first car or replace your existing one on finance, we have set out the information below that you need to know.  

What is car finance?

When it comes to buying a new or used vehicle, there is no doubt that one of the most important decisions you will make is whether to take out a loan to fund your purchase.

This decision may be influenced by many factors including how much money you want to borrow, what type of vehicle you wish to buy, and where you live.

However, when it comes to choosing between different types of loans, it’s worth knowing exactly what each option entails so that you can choose the one which suits you best.

There are a number of considerations, including:

• Interest

One of the most essential things to consider when deciding which type of loan to take out is the amount of interest you will need to pay over the term of the loan. The higher the rate of interest, the more you’ll end up paying back in total.

If that sounds intimidating, it doesn’t have to be! It’s naturally crucial to keep on top of the figures when you’re agreeing to a credit agreement such as car finance. However, as a starting point, we have a car finance calculator on our website that will help you quickly and easily work out how much you can afford.

• Terms

Another factor to bear in mind when comparing loans is the length of time you have to repay them. For example, a personal loan could last anywhere from six months to five years, while a hire purchase agreement might require you to pay off the full cost of the vehicle within 12 months.

Different lenders tend to offer different terms. Luckily, here at Car Finance Genie, we have a panel of car finance lenders on hand, which means that as a motorist in Birmingham, you can be confident of finding the right deal for your needs.

• Fees

Finally, another consideration when choosing between different types of loans is the fees associated with each. These can include things like application costs, administration charges, and late payment penalties.

Here at Car Finance Genie, it’s completely free to apply for car finance through us. Even better, we are a broker, rather than a lender, and maintain relationships with various respected lenders. This allows us to find you the right car finance deal from across the broader market.

What types of loans are available?

So, now that you understand the basics of car finance, let’s look at some of the main types of loan available.

• Personal contract purchase (PCP)

A personal contract purchase deal is a highly popular option among those seeking out car finance in Birmingham. It involves borrowing a fixed amount of money and agreeing to repay it over a set period of time.

A PCP deal will be secured against an asset – in this case, the car itself – and you can receive support with any issues that you might encounter with your vehicle as part of the arrangement.

When the loan term comes to an end, the car won’t automatically become yours, which will mean you have the flexibility to return the vehicle or even exchange it for another one if you wish. Alternatively, you could choose to acquire the car for good with a final ‘balloon’ payment.

• Hire purchase (HP)

This type of car finance in Birmingham has a lot in common with a PCP deal. As with a PCP arrangement, it is based on making fixed monthly payments over time, until the cost of the car – plus interest – has been covered.

A key distinction with this type of car finance is that once you have finished the main loan repayments, the car will be automatically yours, with no final ‘balloon’ payment needing to be made.

This type of car finance also allows you to avoid the excess mileage charges associated with PCP deals.

Don’t turn to other car finance broker in Birmingham!  

Are you ready to discover just how competitive a deal you could get on car finance in Birmingham? If so, please don’t hesitate to make your free no-obligation quotation through Car Finance Genie today; we will really try and help you to #WishUponACar.